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Updated almost 8 years ago,
Strategies in the best way to put your money to work.
My name is Valerie, my husband and I live in Colorado Springs, CO and are newbies is the Real Estate World! Our strategy is to buy and hold. We have purchased our first rental and just got tenants in...so excited! Now, we are looking to buy our second rental property sometime this year possibly. From my husband's job, his profit sharing this year will probably be around $100,000. We are trying to figure out how to best use this money to our advantage. The loan on our first rental is at $160,000. The second home we buy will probably be in the $200,000-$250,000 range. It seems that there are so many options, we don't know which way to go. Some thoughts were, do we pay off the first rental to have 100% cash flow, and then purchase the next? Do we put a sizable amount toward the first, maybe refinance in a year, and then also put down a sizeable amount on the second? I know there are tax benefits to not paying off a loan, but do these outweigh having an investment completely paid off? So much to think about! We greatly appreciate any knowledge and wisdom we can get!