All Forum Posts by: Michael Moreno

Firstly, I commend you for having this perception at this point in your journey.

I would state that at your working age you have considerably more longevity and runway and time for compounding returns. Your time is better spent now trying to figure out how to be exceptional enough in your craft (or move to correct location, or get a new job and renegotiate) to be able to get higher income. You'll be paying down that house for years. 

I would think about this in terms of whether or not you can get additional streams of income faster than your money can accrue interest? If so it might be way more worth it to get a HELOC to invest more or a cash out refi to invest. Your key focus right now should be accruing assets. For instance you could be house hacking to have someone else pay your mortgage right now.

@Michael Moreno

Check out the biggwrpockets leases...save u some $$$$....

Hi Michael, 

I always paid down debt and applied extra to my mortgage throughout my years only to learn that I should have kept my cash and invested. 

Try snowballing your debt witht he highest interest rate paying it off and then adding that montly payment onto the next debt and so on. I agree with the others and would not focus on the mortgage at this time. You have a good rate and once the furniture/water softner is paid off you can apply extra towards the principal mortgage balance in the future. 

@Michael Moreno I might go against the grain here but consider compromising paying your mortgage off in 15 years. You can always pull money out later but this is a safe place for equity. Having a paid off house at 39 is a sweet thing. You are young so be more aggressive with the rest of your funds maybe hit a big winner or two. Good luck.

@Michael Moreno

Agree with rest.....halt extra mortgage pymt save that to invest in real estate...

Keep doing the other non real estate investing bc we all need to be balanced etc ....

Lastly we don't know your situation but what about taking on a roommate or room rental to help with the original mortgage? Or possibly butly something smaller to live in now keep existing as a higher end rental........I pushing the creative side to help cut that mtg payment.....

We have house hacked in past and was very useful at the time.......

Other people's money. I'm in quite a different situation than you, I'm a general contractor so most of my extra funds go right back into the business. So for my next couple flips I'll be utilizing hard money, and securing those hard money loans using the equity in other people's houses by having them set up a HELOC then drawing up a contract stating that I'll have access to the funds for a certain time frame. I'll be offering a high interest rate for just the funds being available to me, even though I'll never need to draw a penny of it. It's a win for everyone involved.

I think paying down the mortgage should be demoted from your priorities, at least in the traditional sense.

look into what you can do with that money as well as OPM to multiply those funds. Then in the future when you have 10s of thousands from it, that would be a more appropriate time to drop a couple thousand on the mortgage if you want. 

@Michael Moreno

According to your fact set you are running a deficit right now burning cash/depleting your reserves even before making the additional principal payment.  

You have to make your own decisions but paying down a mortgage while borrowing to buy furniture is usually not optimal.  

Impressive that you are working hard and planning keep at it you have the biggest asset right now with time on your side.  

 No problem - glad the people of BP could provide some assistance. I have to ask, is the water softener a payment plan for the system for the home? What is the interest rate on that and the furniture payment. If those are higher than 5% then I would consider using the $1000 to get those paid down and get one of them paid off and work toward the next as they usually have a min. payment.