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Should I Pay Off My Rental Mortgage?

debt-37557_1280-PDIf I pay off my rental mortgage, my cash flow will definitely increase.  It has been a year since I paid off my last mortgage, not literally my last mortgage, but the most recent one I paid off.

My investment account balance has grown back to where I was before I paid the mortgage off, and then some.  So, I am now wondering if I should pay off one additional mortgage.  There are a lot of things to think about before you make a sizable payoff.  What are the other uses of the capital?  How strong will your cash flow be after the payoff?  What are the alternative investments, such as the stock market?

Here is the analysis that I am going through.

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The 7 Dirty Truths about Landlording (Like it or Not!)

truth-257160_1280-PDIt’s not always fun and games when you are a landlord.  Life is not always fair, and even in a win/win situation someone loses more than the others.  In the landlord game, you need to win enough to be profitable.

Landlording is not always making large banking deposits and Caribbean vacations.  Sure, around the world trips often come with owning Real Estate, but you still need to earn it.  Here are some of the dirty truths about landlording.

Disclaimer: Show me a landlord that is not in the business to make money, and I will show you a manager for government housing.

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Allocation Budget for Maintenance

plumber-35611_1280-PDEvery property needs maintenance, you must understand how to budget for maintenance.  The renter’s damage deposit is for just that, damages.  It is not for routine maintenance, It is not for wear and tear.  Things like carpet replacement when it has reached its depreciated lifespan, appliances, painting, cleaning, new windows, kitchen cabinets, new roof, etc. Continue reading “Allocation Budget for Maintenance”