Pay Off Loan or Buy More Properties

[John Metrick]

As an early 60s aged new investor, I am wondering if I should focus on paying off of my current rental properties 30-year mortgages and enjoy the increased cash flow in a decade or should I continue purchasing more rental properties realizing that at my age (60+) I may not be around in 30 years to enjoy the benefits of the larger portfolio. By focusing on paying off the mortgages now, I will save paying  all that interest and I could have a nice cash flow in 10-15 years. Buying more properties will create a larger protfolio but most of my payments for the next 10-15 will go towards the interest and will not build much equity in the properties. Any thoughts or recommendations?

[Anthony Wick]

@John Metrick. Regardless of age, what is your short, medium, and long term goals? I'm 51 years old and I am currently refinancing numerous properties to use the leverage to buy more. I have no intention of paying off these properties before I die. I don't think I need to, at today's interest rates. 3.5% loans to buy more properties? Yes please. My tenants can pay off the mortgages on all properties. I'm very comfortable with 80% LTV loans, because I also have plenty of reserves for any capex or maintenance or vacancies.