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Paying off loan on rental property with 6.8% interest
Hello all, just bought a rental property, total 200 k, paid 25% down, so now loan of 154,000 at 6.8% over 15 years. Total interest over 15 yrs is 93k. I am in a position where I can pay it off and save all the interest. I also see people not paying off rentals to get the benefit of tax break on the interest they pay? Right now, my interest is way higher than my principal. What would you recommend? Pay it off or use tax break and keep my cash for another rental property ? (I don't know when I would be ready to buy the next one since interest rates are now around 8%). Thank you everyone. Appreciate it.
Most Popular Reply
What are your goals with real estate investing? Generally speaking, if you are looking to grow your portfolio, you do not want to pay the loan down early. It would be better to save the cash for a down payment on another property.