What to do with proceeds from sale?

[Eric O.]

We sold our former primary residence with the proceeds being tax free. I want to make sure I’m making the right investment with the proceeds. We own three condo rentals which are all financed on 10-yr loans. Very small cash flow per month on them when financed. Goal was to start living on the rental income when the mortgages were paid off. I am 40 years old.

With the proceeds I was going to pay off all three mortgages on the condos. The annual net return would be 15% a year. That’s the best decision I can do with the money, correct? The cap rates are at 6%. I wanted to bounce the idea off of someone else.