I run a successful small business where the ROI for money invested there is substantially larger than what I can get via normal methods (stocks, real estate, etc.). However, I don't like to have my eggs all in one basket (my business), so I try and behave as if I'm just an employee of the business, and that the business value will be pure gravy, if it were ever to be sold.
Some quick numbers:
Take-home pay: $24,845/mo
Monthly savings: $13,200
Stock portfolio (401ks, IRAs, brokerages, etc.): $465,000
Cash: $50,000
Personal Residence: $450,000
Rental: $328,000
Mortgage on the rental: ($230,000)
I don't have any other debts.
The business has some excess cash, where I could pay off the mortgage (at 3 5/8%) and enjoy the ~$1695 in net monthly cash flow, while not subjecting the business to any cash flow risk there.
So...do I pay off the rental? Or should I be looking to purchase another rental and enjoy the unbelievably low interest rate?