No. of Recommendations: 1
Well, I thought I'd toss this idea out there and let the board chew on it. I have a small real estate business in which I purchase and rent out properties. Currently between my new wife (as of June 23rd!:-)) and I we have 4 not including the house we are living in which makes a grand total of 5 homes. Two of the homes cash flows and they are all on 30 year fixed mortgages. I have long term tenants in all of them who pay their rents on time. I would like to stop working in about 5 years when I turn 33 and focus my efforts on my real estate careers, however all the home mortgages total $872,336.77. I have already taken a piggy back loan of $18,500 that was 30 year fixed at 6.035% and moved it to a 12-month 2.9% offer, credit card. That way, I have a lower rate and save some money in the long run. My question is after I pay off that 18,500, would it make sense to write a convience check to the mortgage company every year from my credit card to take advantage of a low interest or 0% interest loan to pay down the principle balance? Once a house is paid off, I would use the rental income to continue snowballing until all homes were paid off. With increasing rent, this would give me an income of around $7,000+ a month that I would have free and clear. Any thoughts?

kook79
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement