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Cash Flow: save and put down on another house, or pay principal?
I am closing on a townhouse next month, and will be renting it out. All expenses a month equal $1400. I will be renting the unit for $1900 a month. Should I save all the cash flow and put down on another house, or pay off the loan quicker? I have other sources to use for a down payment another house next year. I have been hearing that using the cash flow to put down on another house is the best method, but wanted some input. Thanks
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Dennis M.
#5 General Landlording & Rental Properties Contributor
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- Erie, pa
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Never pay the loan quicker , don’t do the bank any favors . Let the tenants do their jobs .