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

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 3 January 2025

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

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Summary

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 Join BiggerPockets for FREE Real Estate Rookie Facebook Group Real Estate Rookie YouTube Sample Closing Disclosure NACA USDA Eligibility Map Ask Your Question for a Future Rookie Reply Grab “The Book on Rental Property Investing” Find Investor-Friendly Lenders Real Estate Rookie 261 – How Nancy Rodriguez from ‘Love Is Blind’ Hit Financial Freedom BEFORE Fame Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-505 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Okay, let's get your questions answered. I'm Ashley Care and I'm here with Tony J. Robinson.
0:07.7	And welcome to the Real Estate Rookie podcast where every week, three times a week, we're bringing
0:12.1	you the inspiration, motivation, and stories you need to hear to kickstart your investing journey.
0:16.9	And today, we are diving back into the Bigger Pockets forums to get your questions answered.
0:22.6	Now, Ricky's, the forums are the absolute best place for you to go to quickly get all of your
0:26.7	real estate investing questions answered by experts like me, Ashley, and so many more within
0:31.5	the BP community. So today we're going to discuss. First, how to determine when and if you should
0:37.3	pay off your rental properties. Second, we'll discuss how to use an F, how to determine when and if you should pay off your rental properties.
0:38.8	Second, we'll discuss how to use an FHA loan to get into your first multifamily property. And then
0:44.4	finally, we'll talk about the best ways to get your rental filled as fast as possible. So, let's
0:49.1	get into today's show. This question is, who has paid off their rental properties? My wife, 39 years, and I, 42 years,
1:02.8	currently have three single family homes. I own a business and she works in the health field.
1:08.5	Together we bring home 270K annually after income tax.
1:13.6	First rental is valued at $370,000, and we paid it off last week, renting for $2,100.
1:21.5	Second rental is valued at $470k, still owe $200,000, renting for $2,495.
1:29.6	Plan to pay it off within two years.
1:32.9	Current one is a primary home valued at $450,000, still owe $300,000.
1:39.4	We plan to get one property each year to get up to 10 properties.
1:43.8	When we retire at 60, we want to have
1:46.0	all 10 properties paid off so we can live off of the passive income along with our stock investments.
1:51.7	Does anyone have similar goals? Most investors I talk to don't want to pay off their rental mortgage,
1:57.1	but I guess it just depends on their specific goals.
	...

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