Three houses which do I pay off? Or should I....

[Chris O'Connor]

Greeting Netizens of BiggerPockets!

I currently own three houses and I think I have enough money to pay one of them off.  I was wondering which of the three I should consider paying off of if I shouldn't.

1.  Remaining Loan:  $117,500 15 year mortgage at 3.25% rent is $1350, mortgage is $1,465

2.  Remaining Loan:  $125,000 20 year mortgage at 3.75% rent is $1450, mortgage is $1,300

3.  Remaining Loan:  $180,000 30 year mortgage at 3.67% Currently live in this one.  

The reason I'm debating paying one off is because I don't think I'll be able to purchase another one having so much debt.  Is there any calculation you guys use when determining which home would be the most beneficial to pay off? 

Thanks for reading and I look forward to your answers!

-lndr

[David Faulkner]

Originally posted by @Jerry Padilla:

@Chris O'Connor

If you are showing a gain from the properties on your tax returns and have a steady job with income, I don't see why not. It is too hard to determine without you applying though. 

Agreed. If these properties are producing positive cash flow, and you can prove it to the bank via tax returns, then they should not negatively effect your debt to income ratio. If there are other debts you have (consumer debts, student loans, etc.), those may hurt you in getting another mortgage, and then you should consider paying off those first, but not before talking with a bank or mortgage broker to verify that you can't take on more mortgages and diagnose specifically why. There may be other personal or financial reasons you may want to pay off your mortgages, but that's another conversation.