Financial Guidance - Landlord Forum thread 361481

Financial Guidance by Jason on August 17, 2021 @03:49

I don't know if anyone in this forum will be able to provide me with guidance/advice/assistance, but I figured that I would at least try.
I work FT and own 3 rental properties (total of 7 units). 1 unit is my residence and another is undergoing significant renovations.

I currently have three 30-year mortgages:
A. FHA, originated 2013, 2.70% fixed, no PMI, balance: $61k
B. Conventional, originated 2016, 3.75% fixed, no PMI, balance: $57k
C. Conventional, originated 2017, 4.375% fixed, no PMI, balance: $73k

I have approximately $60k saved and within a year or two, I will have the opportunity to pay off Mortgage C (today's balance: $73k).

I have not decided if I want to purchase another MF or SFH and continue this journey or if I'd like to quit while I'm ahead, pay off Mortgage C and give myself some breathing room.

While it sounds incredibly tempting to work my ass off and pay off Mortgage C, does this really make sense financially? Eliminating a mortgage would reduce tax deductions. Obviously if I want to purchase another MF or SFH property (residence or rental), the savings would come in handy for a down payment, closing costs, incidentals, etc. Since the housing market is incredibly competitive right now due to the economy, buying right now is most likely not a possibility.
So...
Would you pay off Mortgage C ASAP?
Would you keep some savings and dump the rest into a 401k? I'm 37 and won't be retiring anytime soon.
Would you just keep grinding away and saving for Property #4?
Would you pay additional funds to the Principal of Mortgage C to shave a few years off of the original loan?

I know that there are a lot of variables to this scenario, which is why I am seeking advice from as many people as possible.

And if there are other options out there that I missed in this post, please feel free to advise.

Thank you for your time. I greatly appreciate it.

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Re: Financial Guidance by Garry on August 17, 2021 @08:01	[ Reply ]

I can give you some advise, but I will need some more information. What is YOUR OWN NET income per month from your job? How much is the rent from each of your rentals each month, and what are your actual payments ( PITI ) going out, on each of them? Are the rentals in good areas that when you have a vacancy, that they will rent fairly quickly? How long have you owned each of your properties? Thanks

Re: Financial Guidance

Re: Financial Guidance by Daniel (CA) on August 22, 2021 @15:03	[ Reply ]

Listen to Dave Ramsey for a month, then come back, he has some serious insights ; which do not conform to my situation, but it has logic to it.