This is Terrio Media.

Hey, Mad Terrio here and welcome to another episode of Financial Freedom Friday with Matt Terrio.

Okay, so the question that came in this week

was, if I buy a rental property,

should I pay it off or should I just make

the minimum monthly payments?

And I'd have to say, like most real estate questions. make the minimum monthly payments.

And I'd have to say, like most real estate questions, that's a big fat, it depends.

It depends on what your goals are.

It depends on what you're looking to accomplish. Maybe if I I'll write out the scenario here and just

kind of show you the difference in the outcome of both and then you can make

the decision based on what you want to do. So let's say we've got, we'll call this scenario one where we're going to pay off the house.

And then we'll call this scenario 2 where we're going to take out a loan,

purchase it and just make the minimum payments. Let's say both houses fair market value is $100,000. Let's say they both rent for $1,000.

It's a month.

And let's say the expenses,

we'll just minus say 40%.

That's a good round number, rule of thumb.

It's going to stand for your taxes, your insurance, your maintenance,

your vacancy factor, and your property management.

So we'll say this nets all things. vacancy factor and your property management.

So we'll say this nets, all things is being equal,

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