If your return for investing in another property is greater than 8.5%, than it would be beneficial to invest rather than pay off the debt (would want a sufficient cushion above 8.5% to justify the added risk and work of investing in another property vs simply paying off debt). 

Sounds like you’ve already built a strong foundation in multifamily and have a unique edge with your commercial debt background.

I look at it as a way to limit carrying costs on a short-ish term deal until I can sell or refinance into long term, fixed rate debt. 

😱This is why estate planning around tax debt requires sophisticated timing strategies, not calendar watching and hope.The IRS has a loaded gun pointed at your estate plan.

So, if the 2nd does the foreclosure, it may say the opening bid is $65,000 because that is what the 2nd is owed, but the winning bidder inherits the debt for the $325,000 1st, which may or may not be in foreclosure. 

Economists, housing advocates, and everyday homeowners engaged in debate about its potential impact on affordability, long-term debt, and its implications among investors. 

I have some personal loan, credit card debt.

But I want to eliminate the obvious highest risks. 

In contrast, if the property is passed to heirs, the heirs generally receive a step-up in basis to the property’s fair market value at the date of death, effectively eliminating prior depreciation and minimizing potential recapture.

Debt is generally the most affordable capital, so it makes sense to use the leverage but do so responsibly.