Making extra principal payments

[George Bell]

Hello, 

I've been BRRRing and using 30 year DSCR loans. So I have been researching making an extra principal payment every year and how it will cut down your mortgage to between 21-23 years. I'm debating if this is worth it in the long run because If I do then I get them paid off earlier but at the same time I could be using that extra money to expand my portfolio and buy more houses . What's everyone thoughts on this ?

I currently have 7 houses and at a pace now of 3-4 more SFH per year

[River Sava]

Hey Geroge - 

The decision really comes down to your long-term strategy. Making extra principal payments will help you pay off properties faster, which could increase cash flow down the line. But if your goal is rapid expansion, keeping that extra cash to invest in more properties might be more beneficial for scaling.

If you're able to grow at 3-4 SFH per year, putting the extra money into expanding your portfolio could generate higher returns overall compared to paying off the loans early. It's a balance between immediate growth and long-term security. Both strategies have merit depending on your end goals!