Wait, why would I pay off a debt on a rental property or on my home when I lose the tax deduction?

That's actually a point or a question I get fairly often and it's actually a myth.

It's or at least a misconception because paying off a debt doesn't necessarily mean that it's a bad tax move.

There's some nuance to it and I'm actually going to get into it in this episode of Ask Coach,

and we're getting started right now.

Welcome to this edition of Ask Coach.

My name is Chad Carson. You can also call me Coach. And this is a show all about investing in real estate, achieving financial independence, and doing more of what matters. So I started the episode with the question and with the idea that some people say, hey, you shouldn't pay off debt. That's not a good idea. You should use that money to do something else

because if you pay the debt off, you lose a tax deduction.

So I told you how I dig into some nuance here.

And if you're watching this on YouTube,

you can see my beautiful picture here of a dog

or maybe it looks like a goat.

I'm not sure.

But the point I want to make here is that you don't want to let the tail wag the dog.

You don't want to let what is a kind of a corollary thing take away from what's the core,

the main thing.

And in real estate investing and in business in general, the main thing are the economics,

the core economics of whatever decision you choose to do. And the tail, I mean, the tail is not

insignificant, but it's not the main thing are tax benefits. So I'm going to show you what I mean

by this with some examples of some rental properties. But the main point here is that you make decisions, like if you have $100,000

to invest somewhere and you're going to either pay off some debt or you're going to go buy

some more rental properties or you're going to invest in the stock market, the question,

...