All Forum Posts by: Isaac J Mork

Looking for some guidance as to what the better choice would be.

Do I pay off a loan on a property? or look to invest in another long term rental property?

Paying off the loan would increase cash flow larger than buying a new property from what I’ve looked at so far. I estimate another property would increase cash flow around $3k per year. I had just been looking at Single family Homes, Was looking into multi family but haven't evaluated those yet.

It’s about a $56k loan payoff… would increase cash flow about $4800 per year. Which is about 8.5% similar to stock market.

Larger cash flow would allow for capital building up faster to buy the next property too. And if the right opportunity presents itself could do a cash out refinance.

Paying off the mortgage probably doesn't do much for the cash on cash or Return on equity metrics.

What would be better for long term rentals?

single family homes or multi family 

What should your ROE be? Would this be similar to the 8-10% the stock market averages.

below 8-10% your equity would be better in the stock market? above that your doing well?