[Colin]

Depends on your interest rate, but it’s most likely better to pay the minimum on it because mortgages are typically low interest compared to investing in stocks or other properties.

[Jonathan]

If you have a super low rate then having a loan is protecting you from inflation to an extent.
If you want to pay it off put it in a high yield account until you have enough to fully pay it off. Not a fan of extra payments because you don’t have access to the capital anymore and no increase in cashflow until its all the way paid off.

You can check also: LLCs for rental properties… worth it?

[Jeff]

4 yrs is nothing… wait it out. It’s profitable already.
You’re expensing the interest.

[Dave]

Big tax disadvantage of paying off the loan. If it’s a low (or low ish) best to keep it

[Justin]

Any time I evaluate debt, I look at the interest rate vs what that money can earn elsewhere. Generally my investment portfolio. I also look at how much money would be required to generate the income to cover the payment. Choose the one that makes the most math sene.

Useful: I did have a CPA file the taxes but are there CPAs that specialize in rentals?

[Damon]

People pay off rentals then say “I have $6k cash flow”). That number means very little because its different if you have $100,000 tied up in it or $1,000,000. The metric to monitor is your ROI.

So calculate the ROI under both scenarios (you didn’t give the pertinent info to have that discussion).

[Don]

For me, being debt free is my #1 goal.

[Author]

Posts