Paying more towards the mortgage or keep and save?

[Bry Thomas]

Hello all! This is my first post looking for some good guidance, hopefully before long I can start posting good guidance for others!

My question might be a no brainer but it has to do with the potential cash flow left after paying expenses in a buy and hold/rental situation with conventional financing.

Here is a simple scenario: Duplex with long time renters was bought for $85,000 with 10% down on a 30 year mortgage. Monthly mortgage payments and other expenses total about $450 with renters paying $850 leaving cash flow of $400. I still have a rainy day fund so I dont need to squirrel away any of the $400.

Now is it more wise to put some/all of the $400 towards the mortgage to build equity faster and potentially borrow against it later on, or is it more beneficial to keep the money aside to myself for future investments? They both sound the same to me but Im not sure if the greater amount of equity sounds better or not.

Im a newbie so go easy on me!