New investor curious on best way to purchase 2nd property

[Emily Lauren boulden]

I’m a new investor with 1 property under my belt. It is a 1b1b condo I took out a loan for and purchased November of 2019. The loan came to 65,000$. I lived there for a short while and rented it out in February of 2020. In March of 2020 I put 10,000$ towards the principle bringing my loan down to 55,000$.

My initial goal was the Dave Ramsey approach. Pay down ASAP and than mortage a second property. However after doing some reading I’m curious on some other ways of going about it and wanted opinions of other more experienced investors.

One thing I can’t do which I know is a popular and good option for immediate cash flow is take out a 2nd mortage. I’m only 21 and I want to take it slow. I have 17k in my savings right now and here’s what I am considering ....

1-Continue to pay down my condo and have the loan paid off and than take a loan out for a second rental.

2-Save my money and let my principle and interest be the only payment on my condo that I make. Purchase 2nd property in cash and rent that out.

Now it's important to note my 1b1b is rented at 1,000$ a month with the mortage and HOA coming to 690$ a month. My Interest rate for this loan is 3.9%.

So what would you do!