pay off mortgage?
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pay off mortgage? (by longlivedon [VT]) Nov 27, 2017 12:01 PM
       pay off mortgage? (by Landlord ofthe Flies [TX]) Nov 27, 2017 12:08 PM
       pay off mortgage? (by RB [MI]) Nov 27, 2017 12:21 PM
       pay off mortgage? (by cjl [NY]) Nov 27, 2017 12:25 PM
       pay off mortgage? (by Nicole [PA]) Nov 27, 2017 12:35 PM
       pay off mortgage? (by longlivedon [VT]) Nov 27, 2017 12:45 PM
       pay off mortgage? (by S i d [MO]) Nov 27, 2017 12:49 PM
       pay off mortgage? (by Landlord ofthe Flies [TX]) Nov 27, 2017 1:16 PM
       pay off mortgage? (by razorback_tim [AR]) Nov 27, 2017 1:19 PM
       pay off mortgage? (by longlivedon [VT]) Nov 27, 2017 2:03 PM
       pay off mortgage? (by LisaFL [FL]) Nov 27, 2017 2:50 PM
       pay off mortgage? (by Gail K [GA]) Nov 27, 2017 3:18 PM
       pay off mortgage? (by Bill [KY]) Nov 27, 2017 4:01 PM
       pay off mortgage? (by Lynda [TX]) Nov 27, 2017 4:15 PM
       pay off mortgage? (by Julie [KS]) Nov 27, 2017 4:41 PM
       pay off mortgage? (by Chris [CT]) Nov 27, 2017 4:51 PM
       pay off mortgage? (by Chris [CT]) Nov 27, 2017 4:51 PM
       pay off mortgage? (by Chris [CT]) Nov 27, 2017 4:51 PM
       pay off mortgage? (by Vee [OH]) Nov 27, 2017 8:11 PM
       pay off mortgage? (by BRAD 20,000 [IN]) Nov 27, 2017 9:48 PM
       pay off mortgage? (by Robert J [CA]) Nov 27, 2017 10:13 PM
       pay off mortgage? (by LiveTheDream [AZ]) Nov 28, 2017 12:24 AM
       pay off mortgage? (by cjo'h [CT]) Nov 28, 2017 2:48 PM
       pay off mortgage? (by Kurt [MI]) Nov 29, 2017 10:49 AM
       pay off mortgage? (by Ray-N-Pa [PA]) Dec 2, 2017 9:12 AM

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pay off mortgage? (by longlivedon [VT]) Posted on: Nov 27, 2017 12:01 PM
Message:

So...this is going to sound like a humblebrag, but it is not.

I have a few buildings will low mortgage balances, about $55k each at a 6% rate. I have tons of cash sitting in a bank account right now earning 1%. I am tempted to pay them off because of the spread. Why pay 5% for nothing right? If I paid these mortgages off, I would not miss the cash in the bank account.

Any reason you all think I should NOT pay these mortgages off? Mortgages are harder and harder to get these days.

Thoughts? --24.193.x.xx




pay off mortgage? (by Landlord ofthe Flies [TX]) Posted on: Nov 27, 2017 12:08 PM
Message:

Mortgages aren't hard when you have equity.

Pay them off. I like the security of no debt. --108.69.xxx.xxx




pay off mortgage? (by RB [MI]) Posted on: Nov 27, 2017 12:21 PM
Message:

Pay off Mortgage(s)

I did and I suggest you do, also.

--71.13.xx.xxx




pay off mortgage? (by cjl [NY]) Posted on: Nov 27, 2017 12:25 PM
Message:

Do any of your current properties need improvements (up coming) like a new roof, windows, doors, siding, etc? If not then the second thing I would think of is do you have enough in the bank to purchase another property (ies) - if you are interested?

It's an expense that you can write off (I think) so even though there is a "5%" spread are there tax benefits of having the mortgage? I'm not a tax person so I don't know (and I don't have any mortgages on my rentals right now).

I'm in the buying mode so if I had enough cash to purchase I would be - but that's me. It depends on where you are in life and what you want to do. --69.201.xx.xxx




pay off mortgage? (by Nicole [PA]) Posted on: Nov 27, 2017 12:35 PM
Message:

I wouldn't. without doing any math, interest and tax deductions would both be minimal at this point.

"cash is king" ... even if you have plenty more, having cash on hand is better, in my eyes, than having bricks and dirt. it doesn't sound like you are going to take that cash and go to Tahiti with it or gamble it away ... so hang on. Yes, paid off is nice but in your situation, what would it matter if you still have the cash sitting there to pay off at any time.

do you have a significant line of credit? if so, that might change my mind.

many say debt free is the best way to go ...as usual, I am opposite. If I take $55,000 cash out of my piggy bank and pay off a mortgage, even if I'm clearing $1000 a month on that property, it will be 55 months ... 4 years and 7 months ... to refill my piggy bank. --72.95.xx.xxx




pay off mortgage? (by longlivedon [VT]) Posted on: Nov 27, 2017 12:45 PM
Message:

I am sitting on a couple million in cash. Does that change anyone's view point?

--24.193.x.xx




pay off mortgage? (by S i d [MO]) Posted on: Nov 27, 2017 12:49 PM
Message:

Pay them off yesterday. Go visit Dave Ramsey and debt-free scream your head off...sign the wall...get free cookies!

You don't need mortgages: you have money!

I want to be like you when I grow up! --173.19.xx.xxx




pay off mortgage? (by Landlord ofthe Flies [TX]) Posted on: Nov 27, 2017 1:16 PM
Message:

Couple of million in cash? Yes that does change our perspective. Makes us like you less.

Just kidding. Of course you should pay the mortgage and any other debts you have. Then consider doing something profitable with the rest. I assume since you're not on a home buying spree, you're looking for something with less hassle. Become a 3rd Party financier (Hard Money) or add to your stock/bond portfolio.

And start enjoying some of it. What are you saving it for? --108.69.xxx.xxx




pay off mortgage? (by razorback_tim [AR]) Posted on: Nov 27, 2017 1:19 PM
Message:

If you had paid off houses and didnít have the cash would you borrow money at 6% to put it in the bank? If the answer is no then you should pay them off. If the answer is yes then hold onto the cash.

Different people have different preferences for risk, etc., so we can only tell you what we would do for our own preferences, not what you should do for yours.

There is still plenty of money out there to borrow. The process may be a little more burdensome than it has been in the past, but a well qualified borrower can borrow all he/she wants up to the limit of your collateral. --166.137.xxx.xx




pay off mortgage? (by longlivedon [VT]) Posted on: Nov 27, 2017 2:03 PM
Message:

Landlord of the Flies, I live a good life, but have few needs (beer, meat, music, travel), so paying off the loans is a bit more academic. We have no debt other than our rental properties. We own our personal residences (three) and vehicles outright (three). We hate debt but would prefer to use it wisely if people think it is better to have the loans outstanding for some reason.

Sounds like I should pay these things off!

Thanks all!

--24.193.x.xx




pay off mortgage? (by LisaFL [FL]) Posted on: Nov 27, 2017 2:50 PM
Message:

Pay them off. I'm pretty much in the exact situation although without the mortgage debt. You'll still have plenty of cash left and be saving a bunch of extra money that your currently paying in interest for no real good reason. Unless you think you're going to be in need of two million in cash sometime soon. --173.170.xxx.xxx




pay off mortgage? (by Gail K [GA]) Posted on: Nov 27, 2017 3:18 PM
Message:

All mine are paid off (I bought each with cash).

I like being debt free. I sleep better at night because of that.

Gail --71.203.xx.xx




pay off mortgage? (by Bill [KY]) Posted on: Nov 27, 2017 4:01 PM
Message:

Iíd love to hear more about your story, how long you worked, what line of work/income, when you started investing in RE, when you started investing in equities, what advice you have for others to reach your position. I applaud what youíve done, unless you inherited it all, then I still applaud the hard work of your family to create wealth for heirs. Would love to hear more, Iím always intrigued and motivated by success stories. --24.26.xx.xx




pay off mortgage? (by Lynda [TX]) Posted on: Nov 27, 2017 4:15 PM
Message:

I have all my money in places where I don't want to touch it (except for emergency $). My income and dividends are higher than the mortgage interest being charged. My tenants are paying off all my mortgages, interest included, and there is still rent $ leftover.

The "secret" is not paying them off in lump sums, but paying extra ea month toward principle only. That way you decrease the loan from both ends. Payments w/principle and interest get applied to the loan going forward--where most $ goes to interest and little to the principle. But extra principle-only payments get applied at the end of the loan--where interest is small and principle is high. You pay both ends to the middle. As your principle-only payments are applied at the end, you drop months and months,eventually years off the life of the loan. I do not wipe out my cash on hand--but I DO recoup years of payments.

Right now I can live on the excess rent and bank my pension and SS. When the loans are finally paid off, that out-go will become more income. --108.87.xx.xxx




pay off mortgage? (by Julie [KS]) Posted on: Nov 27, 2017 4:41 PM
Message:

I'd pay them off. I LOVE being debt free. Even if my tenants are paying my mortgages off.

Then I'd probably take a few thousand & just roll around in it like a pig in mud. Cuz I've always wanted to do that for some reason....... :)

And now I have a new big dog goal......... --63.245.xxx.xxx




pay off mortgage? (by Chris [CT]) Posted on: Nov 27, 2017 4:51 PM
Message:

At this point its such a small amount it hardly matters either way. I'd pay them off simply to avoid having to think about them.

--24.45.xxx.xx




pay off mortgage? (by Chris [CT]) Posted on: Nov 27, 2017 4:51 PM
Message:

At this point its such a small amount it hardly matters either way. I'd pay them off simply to avoid having to think about them.

--24.45.xxx.xx




pay off mortgage? (by Chris [CT]) Posted on: Nov 27, 2017 4:51 PM
Message:

At this point its such a small amount it hardly matters either way. I'd pay them off simply to avoid having to think about them.

--24.45.xxx.xx




pay off mortgage? (by Vee [OH]) Posted on: Nov 27, 2017 8:11 PM
Message:

I grew up on something very close to Dave Ramsey program, hardly ever made any debt so I don't have any to get rid of, pay off what you can slowly, itis very close to a new tax year so why not wait it out till May 2018 then if you desire to study about being a hard money lender to amplify the interest you get now that would make sense. --76.188.xxx.xx




pay off mortgage? (by BRAD 20,000 [IN]) Posted on: Nov 27, 2017 9:48 PM
Message:

Live,

Even if you did not have tons of cash I'd set aside an emergency fund and pay off everything I could. Then let the cash reserves build up again rapidly due to no debt service.

Paying them off is like getting 6% on your money.

The goal of RE is paid for property.

As long as there is a mortgage there is risk. When carrying debt the equity is worthless. All the equity in the world will not help when the rent stops coming in but the bank still wants their money.

Do this for your family in case something happens.

hmmm...good time to update your will!

BRAD

--68.51.xx.xxx




pay off mortgage? (by Robert J [CA]) Posted on: Nov 27, 2017 10:13 PM
Message:

It is very common that properties with no loan get stolen by scammers. They record a phony title change like the property was sold. Then they advertise property for sale, tenants living there, do not disturb. Then sell it for cheep. The title insurance company and escrow are in on it.... They steel around a dozen homes at one shot, then one day your tenants call you and say, "why did you tell me you sold the property"?

Unless you have a Family Trust, Limited Liability Partnership or some kind of difficult why you hold title that can not be stolen that easily -- you are looking for trouble paying off your property.

I had an apartment building with partners. They held title in their names only while I held title in an LLC owned by my Family Trust that required approval of an attorney for any sale. When my attorney got notified of a pending sale, the red flags went up. I saved everyone from loosing their interest, 500K each.... --47.156.xx.xx




pay off mortgage? (by LiveTheDream [AZ]) Posted on: Nov 28, 2017 12:24 AM
Message:

Simply. Yes. Pay off the mortgages. Then invest the rest in mutual funds or buy more property.

Like Sid said, Dave Ramsey usually has good advice. The interest difference by paying off the mortgage would pay for a couple of nice dinners out each year.

Consider too that your rental income will increase with not debt service, so check your tax burden on that, if any.

--47.216.xx.xxx




pay off mortgage? (by cjo'h [CT]) Posted on: Nov 28, 2017 2:48 PM
Message:

Don,congratulations,nice work, they say that $uccess is a journey,not a destination,So enjoy the Journey,and still enjoy Life.charlie........Who is this Dave Ramsey character of whom you speak?.....Worked with Harry Ramsey....good carpenter....maybe a distant cousin...................................maybe not........................... --174.199.x.xxx




pay off mortgage? (by Kurt [MI]) Posted on: Nov 29, 2017 10:49 AM
Message:

In your situation (as you described it) it is a no-brainer to pay them off.

The only argument one "could" make is to instead put that money in index funds, since index funds "could" make more than 6%.

But 6% is a pretty high rate, so comparing that to a savings account, certainly pay them off, I would do it this week. --68.61.xx.xxx




pay off mortgage? (by Ray-N-Pa [PA]) Posted on: Dec 2, 2017 9:12 AM
Message:

Don,

What is your goal at this point?

Is it to grow the number of units?

Is it to have more cash flow?

Is it more freedom?

Without knowing where you are wanting to go - it tough to give you an honest opinion --24.101.xxx.xxx



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