Property Manager · Salt Lake City, UT · Member since 2020 · 11 posts · 5 votes
I have 2 duplexes and both have a true cash flow of $700 a month. Am I better off letting my tenants pay off my mortgage or pay off the loan right now? I can either fake the cash I have and invest in more real estate or pay off one of my mortgages.
Investor · St Petersburg, FL · Member since 2014 · 231 posts · 221 votes
6y
Cash is king right now. I'm saving as much of my own cash as possible. My units are all paying, but with the crazy economy right now, I want to be prepared for rents to stop.
Rental Property Investor · Cambridge, UK · Member since 2020 · 203 posts · 95 votes
6y
@Account Closed you'll see two types of responses to this question. Some people will argue that paying with cash is the safest option and avoids a lot of risk. However, I believe in the power of leverage and having cash on hand allows you to continue to purchase more and more properties. But, I would ensure that you have some equity in each of the properties to minimize some risk. Hope this helps!
“Investors must use conventional financing with a minimum down payment for a duplex of 20 percent. For a property with more units, they need a down payment of at least 25 (percent) to 30 percent.”
Rental Property Investor · Bloomington, MN · Member since 2019 · 404 posts · 542 votes
6y
@Jocelyn Kaufman If you’re trying to grow, use leverage but never over leverage yourself. You can decide for yourself at what point you become over leveraged. My leverage point (in terms of total loan to value) is probably a lower percentage than many on here.
Investor · St Petersburg, FL · Member since 2014 · 231 posts · 221 votes
6y
Cash is king right now. I'm saving as much of my own cash as possible. My units are all paying, but with the crazy economy right now, I want to be prepared for rents to stop.