All Forum Posts by: Valerie Mason

@Bill S.You have an excellent question! We have paid off the mortgage on our own home, which puts us in an awesome position to buy a rental, but was hard for my husband to "go back into debt"! So I would say the value on debt for us is a little on the bad side, however, we see the value in having someone else pay the mortgage. So I would say our risk tolerance is not high. We originally thought we would pay off one home, go to the next, pay off that, go to the next, etc. But not sure that is still our thought process.  Were you saying that 100K would give us a down payment on 2 more properties?

@Frank Jiang our interest rate is 3.875 on a 30 year. We just bought in early December of last year, so it looks like the rates are still the same. I think my husband has the same thoughts about "tax benefits" as you had. Totally makes sense!

My name is Valerie, my husband and I live in Colorado Springs, CO and are newbies is the Real Estate World! Our strategy is to buy and hold.  We have purchased our first rental and just got tenants in...so excited!  Now, we are looking to buy our second rental property sometime this year possibly. From my husband's job, his  profit sharing this year will probably be around $100,000.  We are trying to figure out how to best use this money to our advantage.  The loan on our first rental is at $160,000.  The second home we buy will probably be in the $200,000-$250,000 range.  It seems that there are so many options, we don't know which way to go.  Some thoughts were, do we pay off the first rental to have 100% cash flow, and then purchase the next? Do we put a sizable amount toward the first, maybe refinance in a year, and then also put down a sizeable amount on the second?  I know there are tax benefits to not paying off a loan, but do these outweigh having an investment completely paid off? So much to think about!  We greatly appreciate any knowledge and wisdom we can get!