But as my portfolio expanded faster than my wildest dreams, I knew it was time to assemble a kick-*** team dedicated to underwriting and acquisitions.

At 8.5% on ~$104K, you are basically getting a guaranteed 8.5% “return” by paying it down, plus improving cash flow right away, which matters here because your property is actually negative after debt.If your goal is stronger cash flow and lower risk → paying off (or paying down) the loan makes sense.If you have a clearly better deal lined up that will beat 8.5% after taxes and you are okay keeping leverage → then deploying into the new deal could work.

Your personal goal should reflect your cash flow needs and long-term strategy.

Hi @Scott Green, it really depends on your cash flow goals and risk tolerance, paying it off gives peace of mind and stronger monthly cash flow, while reinvesting could grow your wealth faster if the numbers work.For another commercial property to make sense, the numbers should show stronger returns than your current loan cost.If the cap rate minus your financing rate still leaves positive leverage (meaning your debt helps, not hurts, your returns), then it could be worth pursuing instead of paying off your existing loan.

Hello @Rose Cole,Where you should invest depends upon your goal.

Focusing on markets with solid rental demand can help you grow faster and learn the ins and outs of managing small multifamily properties efficiently.

It is not near breaking even and I challenge anyone to show me any realistic underwriting that depicts otherwise.Assume retail is $230k with purchase at $160k, the faster you can sell the higher your profit.  

I accomplished this goal at 52 with 6 paid off beach close doors in South OC Calif.

You've listed two strategies for starting a new business (arbitrage, laundromat) and one strategy for acquiring your first asset (house hacking).While they can all generate income, be careful not to accidentally buy yourself a 100-hour/week job (I'm only exaggerating a little) when your stated goal is to invest in multifamily.

I don't have any helpful advice as I'm just getting started but I do want to thank you for posting this so we can all learn and continue progressing towards our goals.