All Forum Posts by: Conrad Cortes

@Adam Uxley

I bounce this decision around in my head often as well and I think it comes down to the numbers and what you have in your area.

For example, one of my properties has a 5.125 rate and I’m starting to get maxed out on my risk tolerance as far as taking on another mortgage. So my mind is rationalizing paying off the property since I’m having a hard time finding cash flowing properties that fit my risk tolerance at the moment. To me Id rather play it “safe” and take a 5.125 percent gain on my cash while also lowering my debt.

Lowering my debt will also allow me to purchase more properties in the future more comfortably.

Everyone’s situation is different so I figured I’d tell you mine to help you out.

@Katie Greenman

Can you afford to do both? The reason I say this is because I know many people who dump most of their free cash into their IRAs and 401Ks, and leave them selves little cash for investment opportunities.

I’d say for some of these people this is okay because they cannot manage that extra money and would spend it. But if you know you can manage the free cash and save for real estate investments then I’d say lean more heavily on that route.

And as others have said, if you can afford to save for a real estate purchase and contribute to your IRA, then go for both.

@Shiloh Lundahl

I love the amount that this post stirred the pot haha!

@Brent Zande

In my opinion, the fact that a lot of us “see it coming” is why it won’t happen.

@Chyniece Cox

Getting a property and financing it for 15 years. Now that the rent only covers the mortgage and leaves me no room to cash flow and save for emergencies. I’m forced now to pay the property off to make it cash flow instead of using that money to get another property.

Basically I didn’t have a proper strategy laid out when I first started.