Extra Cash - How to spend effectively!?

[Lawrence Paul]

So, I currently have two rentals that are both cash flowing and a primary residence that I will be moving from and renting in roughly a year (Total of three rentals in a year from now and a primary).

Mortgages are 350/510/510 - Not including expenses/escrow/ect.

I currently have about $30,000 in cash just sitting in my account and keep going back and fourth on what I should do with the funds.

My debt-to-income ratio is nearly capped at around 40% or so with the recent acquisition of my new primary.

Do I:

A) Hold the cash until my debt-to-income ratio comes down next tax year (I hope?) or,

B) Pay off the first rental ($55,000) or,

C) Something else that I might not be thinking of?

I have no car payments or other debt that I could pay down, just three mortgages and related expenses.

[Hunter Vigneault]

Put (or keep) the cash in a high yield savings account - personally, I use American Express online, which is still FDIC insured. Having additional buffer these days is not a bad thing.

Paying down debt is good in theory, but if you can't pay off your balance in full then you have expended your cash without improving your cash flow.