Paying off my mortgages

[Vincent Jess]

I currently have 4 long term rental properties. 2 are paid off and We still have 2 other properties we purchased a few years ago with bank lending mortgages. Rates were around 3.14%. We have 20k left on our condo which cash flows about 250 a month. We have about 60k left on a 3b1b rancher which cash flows about 900.00. My question is, should I just pay off one or both mortgages with excess money I have in the bank (IRA's, stocks etc). I keep watching the stock markets over the past few weeks and we have lost quite a few thousand dollars. I am wondering if I am just better served pulling some of that money out to pay off our properties.

Thanks

Vince

[David M.]

@Vincent Jess

Hmmm...  Depends on your investing goals...

If you more time on your hands, i.e. you aren't near retirement, you might consider refi'ing now.  Pull the cash out while interest rates are low / haven't risen.  With time on your side, the "power of leverage" will make you more money...

Also depends on how much you have in assets and how much you want to put towards real estate.  if you are in NJ, maybe chances these properties have plenty of equity.  So, $80k to finish off two mortgages isn't much overall.  If "cash is king" to you, then I guess you will be liquidating your stocks to cash and will have unperforming cash.  Sure, pay off the mortgages as long as that doesn't defeat the cash is king principal AND you don't mind the opportunity cost to buy on the market drop.

You mentioned IRA.. I certainly wouldn't pull from my IRA, unless you are perhaps of age. Even then, there are the tax consequences to consider...

I hope this helps.  Good luck.