Evaluating Mortgage Payoff vs. Real Estate Investment Strategies

How much should your down payment for investment property be? Should you increase your down payment to maximize cash flow, or does putting all your financial eggs in one basket limit your ability to build and scale your real estate portfolio? Or should you instead pay off that high-interest-rate mortgage early to keep all the cash flow at the end of the month? We’re answering these questions in today’s Rookie Reply!

With high mortgage rates, one rookie asks whether it’s better to pay off their home with a seven percent rate INSTEAD of investing in more rentals. Paying off that loan gets you an automatic return, but there’s a strong argument as to why it isn’t the best move.

Are you doing your first house flip? Another rookie wonders whether they can negotiate when taking on a hard money loan and if the juice is worth the squeeze for a $50,000 profit on their first flip.

Looking to invest? Need answers? Ask your question on the BiggerPockets Forums!

In This Episode We Cover:

Investment property down payments and how much you should put down to prioritize cash flow

Whether to keep investing or start paying off your high-interest-rate mortgages

Why you can’t just look at the cash flow when analyzing a potential investment

Financing a house flip and negotiating with a hard money lender (should you negotiate?)

What you should ALWAYS do before you take on a house flip to ensure your numbers are right

And So Much More!

Links from the Show

Ashley's BiggerPockets Profile

Tony's BiggerPokckets Profile

Join BiggerPockets for FREE

Real Estate Rookie Facebook Group

Real Estate Rookie YouTube

Protect Your Properties with an LLC through Corporate Direct

Ask Your Question on the BiggerPockets Forums

Grab the New Book, “The House Flipping Framework”

Find Investor-Friendly Lenders

Stop! Before Making a Large Down Payment, Read This

(00:00) Intro

(01:00) How Much to Put Down?

(11:42) Pay Off High Rate Mortgage?

(17:49) Financing a House Flip

(24:47) Is This Deal Worth It?

(29:24) Ask Your Question!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-484

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