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Updated about 3 years ago on . Most recent reply
Should I Borrow Against or Payoff Rentals?
I have a few rentals and I'm not sure what the best course of action is? Should I borrow against them or focus on paying them off? I was just reading that it's best to fully borrow because leaving equity is an opening for a potential lawsuit? Is this true?
Most Popular Reply
Nathan Gesner
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- Cody, WY
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It depends on your goal. Are you trying to grow or are you trying to be safe?
I try to keep my equity around 40% in every property so my money is available to purchase more. If you're done investing and just want stability and safety, then paying them off may be the best option because you'll have more income each month.
I try to keep my equity around 40% in every property so my money is available to purchase more. If you're done investing and just want stability and safety, then paying them off may be the best option because you'll have more income each month.
- Nathan Gesner
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