anyone own rental properties on here?
I'm curious if you folks with rental properties own your primary residence outright.
Does it make sense to take on a mortgage loan for a rental property if you're still paying off the loan for your primary residence? Thoughts?
It all depends on what profit the rental makes.
If your primary residence is at 3% and you are making 25% profit on the rental, then absolutely yes.
Remember my criteria- If you can't make double what the mortgage, taxes, and insurance are, then for me it's not worth it.
...and that you also need to factor any short term repairs, plus contingency for long term repairs, or basically a slush fund pile of readily accessible cash.
We recently refinanced the latest one for much less than the current value, and paid off the earlier one.
The total outstanding balance stayed the same, the term stayed the same, our payment went down $230 a month, we knocked $8,000 off the loan amount to be payed back...plus we now own a house, free and clear.
Did I mention that these 2 rental properties make the payment on our primary residence?
So, no I haven't paid off the primary. Remember that big pile of easily accessible cash I mentioned above?
