Rental Property decision.. Need Advice..

[Elijah Crew]

I am at a cross roads here and I would be very thankful if I had some assistance. In a year from now come August of 22, 1 of 2 choices will be made. "A" sell a single family property and use the profit to pay down mortgages on a couple properties for the reason being that hopefully deep into the future these properties will be owned outright."B" use the equity in the property instead of selling it which has been owned for about a few years now to help finance another property then rent both of those properties out to gain passive income. I am an aspiring investor and I feel like B would be the better of the two options, but others disagree. So I would truly appreciate it if someone can offer some advice. If you need more information to truly decide feel free to direct message me. Thank You!

[Nathan Gesner]

It depends on your goals. I'm still relatively young and healthy so I'm more interested in growing via leverage than I am paying off properties. I try not to have more than 50% equity in any property because I want to put that money towards new investments and continued growth. I also get some great tax deductions that I wouldn't get if they were paid off. At some point, I'll probably pay off those properties to increase my cash flow.

It's hard to answer your question without knowing your entire picture, including what your goals are.