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Updated about 1 year ago, 10/09/2023

User Stats

11
Posts
11
Votes
Chris Meunier
  • Redwood City, CA
11
Votes |
11
Posts

Pros/Cons to paying off rental property early

Chris Meunier
  • Redwood City, CA
Posted

Hi Everyone! I have a rental property with the following details:

  • 210k loan balance 
  • $2500/month rent
  • $6000/yr in income after PITI and costs today

If I pay off the remaining balance on the loan, I will have over 10% cash on cash return which sounds amazing. It is already cash flow positive today, around ~$600/month. My overall investment goals right now are to create passive income, so this would fit in with that. Is there anything I am missing with my considerations? Of course there is the option to invest the 210k in other real estate opportunities, but I may be hard-pressed to find something above 10% return. Thanks in advance for your thoughts.

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