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Learning, Sharing, and Teaching => Investor Alley => Topic started by: bufj23 on January 14, 2019, 12:47:03 PM

Title: Extra rental income
Post by: bufj23 on January 14, 2019, 12:47:03 PM
Hi - new forum follower here.

35 Years old. New York State.

4 Income properties on mortgages ($27k, $70k, $80k, $86k)  which bring in about $3k extra profit each month. Would you snowball and pay these off or utilize the extra income through other investment vehicles?

Title: Re: Extra rental income
Post by: Andy R on January 14, 2019, 07:45:51 PM
Depends on interest rate and how close to retirement you are.
If your interest rate is locked in at 3% for 30 years, your return from the market will almost certainly be better.
Further from retiring, also less reason to pay it off, but in retirement, generally you want to lower your market risks which means less expenses (mortgage payments) that come out of income that is subject to market risk (ie stocks).