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Stocks & InvestmentsJan 17, 2019
eBaydooodledoo

Pay off loan or buy another place?

I have a couple rental properties. One is about 10 years from being paid off, and I owe around 85k. It rents for 1300 a month. I pay about 225 for HOA, and another 100 for property management and then 1100 for the mortgage/prop tax/insurance per month. After taxes I basically break even on it. Should I just pay it off and start making income on my money, or buy another house somewhere cheap with 85k down?

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Microsoft IMRE74 Jan 17, 2019

Buy another house with 85k down in a different region

Microsoft hiiiiiliii Jan 17, 2019

Compare interest rates, and remember that your mortgage interest is tax deductible from the rental income on that house.

New
DuQvV7x Jan 18, 2019

With depreciation you are ahead. Review your cash cushion & risk capacity. Remember, leverage (done properly) is the key to wealth.

eBay dooodledoo OP Jan 18, 2019

I’ve never depreciated it... I need to learn more about how that works. As far as cash, I have 500k getting 2%. I’m planning to buy more rentals after the next crash.

New
DuQvV7x Jan 18, 2019

Learn about depreciation before any next move. As for a crash, I don’t know how to predict the future so I run numbers in the present. If a property hits my profit threshold then I’m in.