Help! Balance Pay Down Strategy?

[Jeremy Helsabeck]

Need help and would love your feedback!

I’m fairly new to real estate investing. I purchased 2 properties last fall and another this past week. I am under control on my 4th.

My interest rates are all different:

4.25% purchased last fall (condo)

4.25% purchased last fall (duplex)

4.625% just closed (condo)

5.25% closing in the next 2 weeks (condo)

Once I close on my 4th I've been debating on if I should pay down one of them more aggressively to either 1031 exchange or HELOC to purchase a couple more properties. The higher interest rates were 20% down, last fall 25% down.

I don’t need the monthly cash flow at this time as my primary job covers the bills and then some.

What would you do in my position based on the information provided? Keep the monthly cash flow? Additional principal balance pay down, if so which property?

My long term strategy is to build a portfolio large enough to "retire" from my primary job now and continue to build more wealth in real estate. I haven't gotten into the BRRRR strategy yet, but I hope to do so on my next 1-2 deals, but don't feel comfortable doing it from Denver CO.

Would very much appreciate any feedback and suggestions on strategies!

[Whitney Hutten]

@Jeremy Helsabeck if you are still in the accumulation phase, then save your money and cashflow and go buy the next property.  If you pay down equity, you are telling the bank "I don't need this money right now, you take it.  And when I need it, I'll come back and requalify to borrow it at the prevailing terms."  If you keep it cash, you don't have to do that ;)