Payoff home or invest

[Torey Chumbley]

Hello BP family! I’ve spent many hours researching turn key real estate and I am about ready to finally pull the trigger. I have about 100 K saved to start my first deal but wondering about my strategy to pay off my home. I have been adding about $3400 per month to my mortgage for the last year and a half and will have it paid off in full in about another 3 1/2 years which is also when I plan to retire. Should I continue to pay down the mortgage or use the money to buy rentals? Also wondering if it is better to leverage the rentals or pay cash? I would love to hear your opinions. Torrance

[Aaron K.]

It might depend on how much you have left on your mortgage, also do the math a rental might net you a couple hundred dollars a month in cash flow, but depending on the size of your mortgage payment paying it off could easily increase your cash flow by $1,000 or more per month.  You could then invest after that and purchase properties that cash flow from the beginning.