Do I pay off a loan on a property? or look to invest in another long term property?

[Isaac J Mork]

Looking for some guidance as to what the better choice would be.

Do I pay off a loan on a property? or look to invest in another long term rental property?

Paying off the loan would increase cash flow larger than buying a new property from what I’ve looked at so far. I estimate another property would increase cash flow around $3k per year. I had just been looking at Single family Homes, Was looking into multi family but haven't evaluated those yet.

It’s about a $56k loan payoff… would increase cash flow about $4800 per year. Which is about 8.5% similar to stock market.

Larger cash flow would allow for capital building up faster to buy the next property too. And if the right opportunity presents itself could do a cash out refinance.

Paying off the mortgage probably doesn't do much for the cash on cash or Return on equity metrics.

[Charles Carillo]

@Isaac J Mork

Real estate financing is not permanent and it can always be changed. If you pay off this property; you can always refinance it in the future. My first question would be, what is the interest rate? If the interest rate is low and fixed, I might keep the debt. If the interest rate is on the high side; I might accelerate the payoff with additional payments.