All Forum Posts by: Dieter W.

I understand that I have that option, but I am just getting on opinions for the best path moving forward. I also understand the rule of 50%. 

I have a 2 BR townhouse with a detached studio garage apartment in Jupiter, FL. I bought for 350k and currently owe 250k (worth 375k now). I have rented the studio and lived in the main townhouse off and and on for the last two years (while renting it while I am away). The rental market is hot and renting both units with trustworthy tenants is very easy. I have been taking rental income and using it to pay down principal on the mortgage.

I am getting married and now thinking I want to buy a house in the area (versus the current townhouse). However, the plan would be to continue renting out my current unit. Should I continue using rental income to pay down the principal? It is a 30/yr fixed 3.875%.

I am assuming I need to put 20% down on the second home which isn’t an issue, but my question is what is the best thing to do with my rental income. Start saving it to put more down on the second home?

Down the road I would like to add a third rental apartment, but this is 5-10 years out.

Thanks!