Have Capital, Can’t find a Deal, Should I just pay down debt??

[Vincent Plant]

I’ve been in the investing game about 5 years now. I’ve done flips, brrrs, 1031’s, I have a handful of airbnbs running with a handful of rentals in my portfolio.

I’m ready for the next thing, but dam this market is tough. I can’t find anything. The numbers on what’s available don’t make financial sense to go after. Everything is too expensive, and the rates are too high. I’m in the Philadelphia suburbs.

I keep thinking, maybe now just use the capital I have to pay down debt and increase cash flow? I’ve always been told to always reinvest into more properties but it’s hard to deny:

$50k won’t we me anywhere in this market. But if I use $50k to pay off an existing mortgage, there’s an increase of about $500/m instantly.

Thoughts?

[Joe Villeneuve]

Quote from @Vincent Plant:

I’ve been in the investing game about 5 years now. I’ve done flips, brrrs, 1031’s, I have a handful of airbnbs running with a handful of rentals in my portfolio.

I’m ready for the next thing, but dam this market is tough. I can’t find anything. The numbers on what’s available don’t make financial sense to go after. Everything is too expensive, and the rates are too high. I’m in the Philadelphia suburbs.

I keep thinking, maybe now just use the capital I have to pay down debt and increase cash flow? I’ve always been told to always reinvest into more properties but it’s hard to deny:

$50k won’t we me anywhere in this market. But if I use $50k to pay off an existing mortgage, there’s an increase of about $500/m instantly.

Thoughts?

That's not an increase in CF.  If you spend $50k and only recover $500/month, all you did was pay for 100 months of that added CF upfront.  Your tenant is already doing that for you for FREE.  Why in the world would you spend money that you don't need to ?  Are you so anxious to spend money that you don't realize the difference between a cost and an investment?