Paying off a rental?

[Tim Siocheng]

Hello everyone, mortgage rates right now is super low that i want to take advantage of it. The thing is the mortgage rates are low if it’s your primary residence and still quite high for investment (rentals).

My current rentals are around 3.5% to 3.75%.

Should i refinance mg primary home and pull some cash out to payoff my rental mortgages?

Will i be taxed on my rentals? Since i won’t have the mortgage payment as deductions.

The reason why i am asking is because it will increase my cashflow every month of atleast $300.

Thanks

[Nadia O.]

I wouldn't do that if i were you. I would take out cash out to purchase another vacation/rental property. In fact that is what i'm doing now. If you're rental is paid off, all that extra positive income will be taxable just like ordinary income. Just let your renters keep paying off your mortgage.