Accelerate payments or save for the next down payment?

[David Killough]

So, I have a few rentals, and some of them are paid off, some still have a note. I have a certain amount of money in the personal budget that is being set aside for our real estate ventures. Here's the question: would you rather save that money for a down payment on another place, or use it to accelerate the payment of another of the properties? 

I can see different viewpoints on the matter, depending on the size of the mortgages. If, say, the loans were quite large, and the money set aside would not really make that much of a difference on the time you were going to save on the life of the loan, then it makes sense to save up for another down payment. But what if you were really snowballing on these things and if you just threw all that set aside money at it and you got it paid off by middle of next year? And then you could snowball the next one and have it paid off in another year? Two more houses paid off in 18 months? 

That's my predicament (it's a good one, I feel). I'm kinda leaning toward paying these suckers off, getting about half of the houses in the portfolio free and clear, and maintaining that balance until it gets time to hang up my hat at work.

Whatcha reckon?