Quote from @Caleb Brown: Is the property worth the higher price to pay off the loans?

I'd also add to that that you are paying a 20% withholding tax on gross rental income. 

If you aren’t saving the money up to buy another property chances are nothing will pay a higher rate than paying it towards your mortgage.

To be clear, you are not paying off the 80K mortgage.

Im thinking about paying the bank the 50lk that we owe and the taxes.

Even better, I might be able to snag it well under market value since it's an estate sale that's been sitting on the market for nearly 200 days.Here’s the challenge: while I could afford to purchase the property under market value, I’d be stretching my budget thin to cover the mortgage during the period I’d be remodeling the basement to make it rentable.

@Jon D. some questions, the answers may help you better focus.1) Why did you pay your primary mortgage off in the first place?

At the time, we were new to the market and, admittedly, didn’t conduct thorough due diligence before buying.We purchased a property in the Atlanta area, renovated it, and listed it for sale.

It'll take time but can really pay off if you stick with it.I'm in Los Angeles and I've investing in TN and GA in the past, and currently investing in SE Wisconsin (your area).Let's connect and discuss the market.

•Business Cards & Branding: You can list both services, but if you want to avoid overwhelming potential clients, consider having two versions—one focused on PM and one on real estate sales, depending on who you’re targeting.Best Way to Generate Property Management Leads1.Target Landlords Where They Need You Most•Most landlords seek out PM services when they’re in trouble—tenants not paying, evictions, property damage, etc.