@Larry Turowski @JD Martin @John Warren for valuable insights. My current mortgage interest on properties is as follows;
Investment Property1: 3.25% (30 year fixed)
Investment Property2: 3.25% (30 year fixed)
Investment Property3: 3.75% (30 year fixed)
Investment Property4: 3.875% (5/1 ARM. Interest rates due for revision in 3.5 years )
Larry, yes I did not include maintenance, capex and vacancy in my 1137/month cash flow calculation for Property3
My ETFs are made up of stocks, after 10 year bull run, I imagine stocks will go down by 60-70% in next 1-3 year span. Housing market, especially in Central New Jersey has not seen such a downturn historically. Maybe 10-20% correction.
Assuming 70% correction on ETFs, $250K available there will be reduced to 100K. I was wondering, why not in that case use some of the 250K cash and pay off property 1 and 2?
JD, what do you mean by "do the same thing you are doing now". Do you advise not to pay off mortgages for property 1 and 2?
John, For property1, if I pay off mortgage now, the 10 year cash flow comes out to be $117K. After deducting maintenance, capex and vacancies for 10 years, it will go down to $100K. If I do not pay off mortgage now, in 10 years the same cash flow will be around $50K. Hope I understood your recommendation accurately? Would you please share with me ROI calculator for real estate investors? Also would you please elaborate on the syndacated deal you mentioned? What kind of investments are these and how to go about looking for the same?
To All, By paying off 2 mortgages worth around $220K, wouldn't I be increasing my home equity and also helping to reduce my debt to income ratio i.e. a factor very critical for getting future mortgages for future rental investments?
