Pay off mortgage or invest in more

[Gabriel Benavidez]

What do you think i should do, focus on paying the blue house off which will take me about 2 and a half years or let my tenants pay it off for me and keep saving and buy another one next year?

[Fradel Schaechter]

@Gabriel Benavidez I think there is no 'right answer' to these options and rather it is dependent on your financial circumstances, risk tolerance, and goals. Also, I am offering information here that I have learned from reading and NOT from personal experience so take it with that 'grain of salt': just my two cents here.

If your property is cash-flowing and you have a goal of owning a certain number of rental units in a certain number of years, you will get there faster if you use leverage, but you would be in a more 'secure' financial position if you paid it off before acquiring more properties and it does snowball once you have more properties. However, it would still not match the pace of using leverage as you expand.

Hope this helps!