Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 6 years ago on . Most recent reply

User Stats

16
Posts
2
Votes
Chris Hughes
  • Jacksonville, FL
2
Votes |
16
Posts

Pay down rental properties or buy another?

Chris Hughes
  • Jacksonville, FL
Posted

What would you do in our shoes?  We are in our early 30’s and own 2 very lucrative rental properties that we manage ourselves.  One was purchased using a 15 year mortgage and the other a 30 year and we have about 13 and 28 years left respectively.  We owe about $225,000 on the mortgages currently and have been considering paying them off over the next few years.  Would be the most conservative use of our funds.

That being said, we are still young and I’ve always been relatively aggressive with our investments and it has paid off.  We’ve been really considering getting into the vacation rental market.  We have met people who tell us about earning $75,000+ /year on properties they spent $300,000-$400,000 on initially.  That seems like really great income potential and perhaps a better (if not potentially riskier) use of funds.  

If we went the vacation rental route, something near us would have its appeal (we live a few blocks from the beach in a nice little Florida beach community) because we could manage it ourselves much easier.  But to me at least, part of the allure of a vacation rental is to have something my family can go spend time at when we want to as well.  Markets we are familiar with and have considered are: Sanibel Island, Florida Keys (Sugarloaf it Key West most likely), and the USVI (specifically St Thomas and St John).  Open to suggestions though!  What would you do!?

Most Popular Reply

User Stats

740
Posts
845
Votes
Stephen Akindona
  • Investor
  • Memphis, TN
845
Votes |
740
Posts
Stephen Akindona
  • Investor
  • Memphis, TN
Replied

@Chris Hughes, You guys are young and have the element of time on your side! I would be aggressive in acquisitions too! One thing to consider is vacation rentals is for the most part unregulated and as it's popularity grows you can definitely expect the government to get involved and regulate. It is already happening in some our markets in the country. Just make sure any vacation rental property you buy you have an alternative hold or exit strategy in case vacation rentals are no longer a viable strategy. (For example, extreme taxation or rules about non-owner occupied properties being eligible for vacation rentals. Some of these rules will be changing in the future!) 

  • Stephen Akindona
  • Loading replies...