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Updated 6 days ago, 12/18/2024

User Stats

97
Posts
218
Votes
Ryan Williams
Agent
Pro Member
  • Real Estate Broker
  • Denver, CO
218
Votes |
97
Posts

Pay off Primary or Buy Rentals?

Ryan Williams
Agent
Pro Member
  • Real Estate Broker
  • Denver, CO
Posted

Hello, I've been tossing this idea around and doing the math and would love the communities thoughts - 

Theoretically, let's say your annual income would allow you to save $100K a year. Would it be better to pay off your primary residence in the span of 3-5 years using that savings, or buy 1-2 rentals a year that break even/have a little cash flow?

I think the freedom of not paying your primary mortgage would be a huge stress relief and allow you to deploy cash quicker in the future and feel safer taking risks when you know your own living situation is covered.

On the rental side, I know the magic ingredient in real estate is time and the sooner you get properties, the sooner they appreciate and are paid off by tenants and 5+ rentals 20-30 years from now would definitely be worth more than the one primary.

Would love anyone's thoughts on how you would go about this situation! Thanks in advance!
 

  • Ryan Williams

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