Rate my rentals

[Steve S.]

I have 2 rentals and i would like some feedback on how you would rate my metrics etc and any suggestions of what i could / should be doing next.

Rental 1

- Built 1998, 2600 sq feet, half of a duplex, very nice finish out, 2 story, all bedrooms upstairs, 2 full bath upstairs, 1/2 bath downstairs

- Acquired in 2016 for $330,000.  

- Current value $570,000

- Current rent $3300

- Mortgage $230,000 at 3.75% (23 years left)

Rental 2

- built in 1978, 1800 sq feet, B to C+ type property but best property in the neighborhood, 3 bedrooms, 2 bath, no garage (converted to man cave / family room)

- Acquired in 2016 for $130,000

- Current value $270,000+

- Current rent $1800

- Mortgage $60.000 at 3.75% (23 years left)

Both have long term tenants locked into longish term leases (netx 2 years or so)

Any thoughts?  Feedback?  Suggestions?

Should i pay off as soon as possible?  never pay off?

[Alecia Loveless]

@Steve S. Both look like good properties to me. Personally I’m not like other investors in that I’d rather have my properties paid off in the event that we ever end up with another rent moratorium or something happens like rent control or who knows what. I do however enjoy having cash flow too.

You’ve got some great rates which is nice.

Personally I pay my mortgage and a set amount specifically towards the principle every month. Usually for me it’s about $150 extra per mortgage towards principle.

I use an electronic payment app through the bank that holds my mortgages to make the payments and there is a button I can push to make specific principle payments. I understand it may be more difficult for some people. It looks like this should help cut off about 7 years from my mortgage.

This way as I continue to build equity in the property I always have the option of refinancing it at a later date if mortgage rates come down once I’ve generated more equity. Right now that’s not the plan but plans can change.