Our dollar is losing value so you need to be with a solid operator in institutional assets that cashflow in markets while hedging inflation with tax benefits. 

@Tom HallAt 7% if you can I would pay it down as investing it net after tax gains may not get you the 7% you are paying - so it’s less riskDownside is you lose liquidity of that money as it’s tied in your propertyIf rates come down in future you can refinance and even take some of the cash out.Regarding your question are rates coming down, a lot of factors come into play but right now it does not appear there will be significant changes to rates over next 3-6 months.

When these projects go south and you lose money, it is not the lending. 

I generally prefer higher since I don’t plan on putting in small claims, it’s basically just for catastrophic loses and the savings in premiums over multpiple properties for multiple years should balance that out if I have ever have to use the insurance.

you lose all ability to be hands on and add value. 

Of course the insurance companies will flee California , they are going to lose money if they cant raise the rates to cover the risk , everything else has gone up why cant insurance go up to keep up . 

I couldn’t “lose” my job.

Hey Randall,Your question totally depends on your goals and situation but rarely is it best to lose $200 a month. 

And in states that allow deposits and then settle up competition is higher as the price of entry is so low 5 to 20k deposits to bid.. now if you dont finalize you lose the money and can be fined as its illegal to bid and not close.

Even getting out with a small profit will add to your return as long as you don't lose it all in taxes.