Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

119
Posts
12
Votes
Cali Skier
  • Oklahoma City, OK
12
Votes |
119
Posts

Financial Vehicle to help me pay off my house quickly?

Cali Skier
  • Oklahoma City, OK
Posted

Hi All,

Just got into the business and just got my first house rented.  I have a 30 year loan I want to pay off in 15.  I am wondering what strategies there are out there to do that.  

Is it possible to save say $200 a month in the stock market some way, such that in 15 years (or when the value reaches the payoff amount) I can take it out and not pay any taxes on it?  Is there a way to do this?  Right?, so the interest earned would normally be taxable, but I am using it to pay off an investment, so I am looking to see if I can avoid the taxes.  Kinda like a the 1031 exchange concept where if I were to sell this property and buy another in x days I do not have to pay taxes.

Is this possible?  Is there a better way, another way? 

Most Popular Reply

User Stats

8,998
Posts
9,366
Votes
Dave Foster
#1 1031 Exchanges Contributor
  • Qualified Intermediary for 1031 Exchanges
  • St. Petersburg, FL
9,366
Votes |
8,998
Posts
Dave Foster
#1 1031 Exchanges Contributor
  • Qualified Intermediary for 1031 Exchanges
  • St. Petersburg, FL
Replied

@Cali Skier, That won't work unless you go into a vehicle like non-taxed munis or something like that.  You'll have a tax bill.  But saving money in an interest bearing or appreciating stock account is a great idea to pay off your house loan early as long as you are making more in return than the interest rate on your loan.  If not then you just as well pay the $200 extra right to the loan.

There's folks who have made lots of progress using bi weekly loan payments and extra principle amounts.  

Your desire to be financially disciplined is great - keep it up!

  • Dave Foster
business profile image
The 1031 Investor
5.0 stars
94 Reviews

Loading replies...