Pay Off My Condo? Or use it as leverage?

[Jeff Dippel]

Hey everyone,

I currently have a 1 bedroom in Laguna Beach, CA that I live in. It's a great location with an ocean view and perfect for rentals. I've been living in it for five years and am starting to think it's time to rent it out because the mortgage is very high. Here is where I'm confused. Should I rent it out and just slowly pay down the mortgage and use the house as leverage for other properties? OR should I try and rent it out, but make extra payments to get rid of the interest on the home so I can cash flow more? The house will help me acquire other properties for sure, BUT if I pay the interest down I could lower my monthly mortgage and cash flow more immediately off the rental. The house alone if paid off could cash 3-5k a month. Currently, the mortgage is around 2500 so I would make very little profit just renting it out. Any help is greatly appreciated!