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Updated almost 5 years ago,
Hold mortgage for tax deductions? Or pay off completely?
I'm 23 years old and just bought my 2nd property. My first property i hold a $62,000 conventional 30 year fixed-rate at 4% and my second i hold is $64,000 conventional 30 year fixed rate at 3.125% both property's I am making an annual 22% cash on cash return. My question is, should I hold the mortgages and make minimum payments and use the interest paid as tax deductions? Or take my next to years income from my W2 job to pay off both units free and clear and avoid many years of interest? As of now I'm not interested in pulling Equity to reinvest witch I know many of you will recommend. What is everyones recommendations and strategies with my current circumstance???
Thank you in advance.