Expedited mortgage to gain equity or ride it out?

[Trent Glace]

Hi all, I've been lurking behind the scenes for about 2 months but this is my first post.

My wife and I have a LLC set up and are diving into the industry starting with duplex, triplex, and 4-plex units. We are working some cash deals on two 4-plex units around $200k each right now, and also pulling an FHA to buy a duplex for $110k. Future plans are to continue with similar growth as rapidly as possible until we can achieve larger multi unit apartment complexes. Now back to the immediate question at hand: we are planning to pay cash from investors on the two 4-plex units and then heloc the investors back within a year so we can all move onto the next one(s) together. But for the FHA property we are not sure the best plan of action. Would it be better for us to 1. Pay off the $110k duplex in a calculated 9 years with an acc. bi-weekly + principal payment plan to have access to this equity quicker? OR 2. Just ride out the FHA for full term and 1031 the property when we decide it's time to put those funds to work elsewhere.

As of now I am planning to ride out the duplex for approx. 15 years unless an opportunity I cannot refuse comes up before that.

Than you in advance for the advice, it is much appreciated.