Extra $3000/mth, pay down mortgage v SEP IRA v 457 def comp retirement

[Sarah Jukes]

Hi! Just purchased our 2nd investment rental property. Loan amount $304,000 7.3% interest (house value $600,000). Other rental loan is 3.5% $553,000 (house value $770,000). We can pay an extra $3000/mth. Could pay off the smaller loan higher % loan in 6 years if we use for that. Or pay the $3000/mth into my husband's SEP IRA, or my 457 plan (I newly work for the county).

Our retirement plans are new and empty. We are 47 +48 yrs old. Would like to retire by 58/60...

We own our primary residence with no loan (house value $1.7 million). So the 2 investment properties we could pay off by the time we retire and that income is our retirement (current total gross rent $7300/mth), although we now have the new IRA and 457 plan......

Any advice!? Or who would we speak to about this without them 'selling' us something.. financial advisor? tax advisor?

[Joe Villeneuve]

Taking your money to pay down the mortgage on a rental property is just adding to your cost of the property.  Your tenant is already paying it for you.  You're already getting those payments made for you for free,...why would you want to start subbing your cash for the tenant's?

Before you bring up the "savings" on the interest, I want you to read the statement I just made above until you say "oooooh".