Real Estate Rookie

Paying Off Rentals vs. Buying More and Low-Money-Down Loans (Rookie Reply)

Jan 3, 2025

Explore the debate between paying off your rental properties versus expanding your portfolio. Learn about the pros and cons of FHA loans and other low-money-down financing options. Discover hidden closing costs you can't overlook and practical strategies to attract serious rental applicants. The hosts also share insights on streamlining the rental application process, ensuring you fill vacancies faster. Get ready for valuable tips that can shape your real estate investment journey!

37:22

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Quick takeaways

Investors must decide between paying off rental properties for reduced risk or leveraging debt to acquire more investments for increased returns.

FHA loans and other low-money-down financing options provide opportunities for new investors, but careful consideration of closing costs and property conditions is essential.

Deep dives

Paying Off Rental Properties: Pros and Cons

The discussion highlights the varying views on paying off rental properties, with different investors advocating for distinct strategies based on personal goals. While some investors prefer having debt-free properties for peace of mind and reduced risk, others argue that leveraging properties to acquire more investments can lead to greater overall returns. The benefit of having a paid-off property is the significant reduction in risk, especially during fluctuations in real estate markets. Ultimately, understanding one's financial comfort and running the numbers can help determine the best approach between paying off debt and focusing on property accumulation.

Intro

4min

Strategic Financial Decisions in Real Estate

6min

Navigating Real Estate Financing

9min

Understanding FHA Loans: Benefits and Challenges

2min

Navigating Real Estate Financing and Management

16min

What’s the “right” way to build your real estate portfolio? Once you’ve taken down your first rental property, should you focus on paying it off? Or should you buy more properties, even if it means taking on even more debt? You’ll want to hear where we stand in today’s episode!

Welcome back to another Rookie Reply! Today, Tony and Ashley are digging through more of your recent real estate-related questions. First, we’ll discuss paying off your mortgage versus using that money to buy more rental properties. After that, we’ll compare the pros and cons of FHA loans and show you an easy way to estimate closing costs. We’ll also cover some other low-money-down loans that you may have never heard of! Finally, are you struggling to fill vacant units? Tired of apartment tour no-shows? Stay tuned because we’ve got a strategy that makes “serious” applicants stick!

Looking to invest? Need answers? Ask your question here!

In This Episode We Cover:

Whether you should focus on paying off your mortgage or buying MORE rentals

The pros and cons of getting an FHA loan for your rental property

The “hidden” closing costs you CAN’T afford to miss (and how to calculate them!)

The best ways to put low money down on your next property

Finding “serious” applicants for your rentals (and lower vacancy rates!)

How to save time by streamlining your rental application process

And So Much More!

Links from the Show

Ashley's BiggerPockets Profile

Tony's BiggerPokckets Profile