Want More Cash Flow? DON'T Pay Off Your Rental Property

Calculate whether you should keep, refi, or sell in MINUTES with Property Llama: https://go.propertyllama.com/bp/

You want more cash flow, so you ask yourself, “Should I pay off my rental property?” In one word: No. Do NOT pay off your mortgage early on your rental property. But how does that make sense? Wouldn’t eliminating your monthly mortgage payment immediately increase your rental property’s cash flow? Yes, but you could be walking away from something that’ll make you more cash flow than a paid-off rental property ever could.

Chris Lopez is back on BiggerPockets to explain why paying off investment property is actually a BAD idea. Chris shows how not paying off your rental properties and using that money for something else can explode your cash flow and allow you to be MUCH richer in retirement. Using Property Llama, Chris calculates cash flow for three situations: Selling and 1031 exchanging your rentals, paying them off, OR reinvesting the money in something else. Wanna see how Chris increased the cash flow on this viewer’s portfolio by over fifty percent? Stick around!

Is paying off rental properties the wrong move for cash flow? If you were in the same situation, which option would you choose? Let us know in the comments below!

Make the best money-making moves in real estate with EASY scenario modeling from Property Llama: https://go.propertyllama.com/bp/

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DON’T Do a 1031 Exchange in 2024 ($1,000,000 Mistake):
https://youtu.be/J4iAM9DUhOI?si=Y1tWHZ2NK4JUBzLm
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Watch More “Keep, Refi, Sell” Episodes:
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Should You Pay Off Your Rental Property, Reinvest, or Buy More in 2024?
https://www.biggerpockets.com/blog/on-the-market-219?utm_source=youtube&utm_medium=description&utm_campaign=none
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Seeing Greene: Is Paying Off My Mortgage Early a Mistake?
https://www.biggerpockets.com/blog/real-estate-621?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Chris on BiggerPockets:
https://www.biggerpockets.com/users/chlopez?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Don't Pay Off Your Rentals?
01:56 Sponsor: Property Llama!
02:45 Current Portfolio Numbers
04:56 Option 1. 1031 Exchange
06:47 Option 2. Pay Off Properties
09:20 Option 3. Reinvest
11:23 Keep Your Mortgage!
12:14 Best Option for Cash Flow?
15:55 Comparing All 3 Options