Should I pay down rental property?

[Ronnie Holbert]

I have a property that has a cash flow after expenses of $175 a month. My question is should I let that money build up in an account or apply that money to principal on the mortgage?

[Tony Antonelli]

@Ronnie Holbert

That was my strategy at first until my tax strategist said "if you want to pay them off then don't pay them DOWN, save the money until you can pay them OFF. If things go bad and you have to surrender the property, the bank doesn't care if you own them 200k or you've paid it down to 20k."

Since then I haven't paid a penny more than the monthly payments.