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Updated over 8 years ago,

User Stats

50
Posts
50
Votes
Paul Doherty
  • Rental Property Investor
  • Mc Kinney, TX
50
Votes |
50
Posts

Have some cash - payoff rental or invest it?

Paul Doherty
  • Rental Property Investor
  • Mc Kinney, TX
Posted

I have enough cash to pay off one of my rentals, which would increase my cashflow by about $600 a month (house rents for $1375 and currently cashflows about $400).

Question is, would I be better off simply leaving that house not paid off, with its lower cashflow, and simply invest that same cash into a taxable investment account like Betterment or Wealthfront?  Do any tax advantages on the rental while money is still owed on it outweigh this as an option?

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