Originally Posted by
evilanne
DirectKarma,
Since mortgage on a rental is an expense that is deducted from rents earned, paying it down isn't that advantageous since it will increase your taxable income. Other factors to consider is whether you can cover the mortgage from other sources in the event that it isn't rented out for a period of time, you get a bad renter that doesn't pay their rent; your financial capacity to cover any damages, major repairs or expenses that could arise--basically anything that would impact your cash flow and the impact on you personally in meeting your other obligations. A lot depends on your specific situation but you may want to seek advice from a financial advisor, accountant of tax advisor as many of the issues are interrelated.
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