Investment Property Equity

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Topic Author
nova148
Posts: 45
Joined: Thu May 05, 2016 9:22 am

Investment Property Equity

Post by nova148 »

For BHs with investment properties, what do you do/recommend when you get close to paying off the mortgage?

Situation: The outstanding mortgage balance on my investment property is only about 15% of the current market value. With declining interest, my tax liability keeps increasing. Currently, am in a high tax bracket so looking for options to pursue a long term wealth generation strategy while minimizing taxes.

Questions:
1) Should I be looking to use the built-up equity to buy another investment property? If so, is it better to sell or borrow against equity?

2) Any other options for diversifying in real estate?

Note:
I am in a stable job and am maxed out on 401K. I don't foresee needing the rental income for another 25-30 years.

I understand probably the BH way would be to sell the property and invest in an index fund. I am currently looking to maintain a position in RE as part of overall portfolio diversification.

Let me know if more information is needed. Thank you.
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