Multiple Mortgage Pay off Strategy?

[Harpreet Walia]

Hi, 

This question will not be first I guess. 

I am just starting to buy into my first rental properties. And like anyone else, intentions are to buy more as I go down the line. But with multiple properties, we are also getting into multiple mortgages. 

How do we efficiently pay off multiple mortgages? I mean I have been reading stories where people have paid off their multiple mortgages within a very short span (7-8yrs)

Is there any specific strategy that we should be following here? Any related link or podcast or better if anyone can share what strategy they used?

[Hunter L.]

Originally posted by @Harpreet Walia:

Thanks Guys. But if we say go ahead with strategy of paying all our say profits from one investment in its mortgage, how are we going to get cash to buy more properties? 

I mean is this even a recommended approach to pay off mortgages early? I am just all questions and doubt here guys may be because I am just getting into my first one

You have to know what your strategy is. If you want to pay all of your mortgages down as quickly as possible, then you are not going to be able to accumulate cash to purchase more properties quickly. What will give you a better return on your money? Paying down a 4-5% mortgage or buying another property? You should run the numbers on this question, and assess the risk level that you are comfortable with.

If I was you, I'd ask myself how much debt I am comfortable assuming (60% of my portfolio's value, 70%, 80%?). Once I had that number, I'd pay my mortgages down until I reached my comfort zone, and then start accumulating cash to purchase additional properties.