Show080: What is the lost opportunity cost of money not invested?

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When Should You Payoff Property

In this show, Kirk and Emily share their authentic, candid conversation about whether or not to pay off of one of their properties.  While there are many things about investing in real estate you can learn through us at RentalRookie or other great sources online, you don't often get to hear the "behind the scenes" conversations that take place about strategy and investment.

As we were about to sit down and talk about this very topic, I immediately stopped Kirk and said "let's record this conversation for the podcast. Then people can hear what our conversations our like when it comes to making decisions about what to do with our property and money."

Our hope is that this conversation will help guide you in your own investing journey when it comes to thinking about the big picture of your entire investment portfolio.


 In the show we discuss:

=>the numbers on the property we may pay off

=>why it may be an overall 'better' option to payoff the property vs. leaving money in the bank

=>the importance of looking at all of your investments and seeing what type of blended return they all bring in

=> and more...

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  • Lars N

    Reply Reply September 20, 2017

    Emily absolutely wins.

    I didn’t like Kirk’s logic where the $75k could be used to pay the property off, yet he sort of ignored the ability to use that money to just rinse and repeat on the leveraged mortgage, and end up with 4 separate $25k properties with the 24% ROI across all of them… at least until Emily brought it up.

    My personal feeling is owning the property outright is pointless unless you’re going to live in it and want the emotional sense of security of knowing it can’t be taken by the bank no matter what happens in life. However, if you’re using real estate as an investment, you should not be making such financial moves emotionally and should be looking purely at the ROI.

    Emily called my point out which was great.

    Kirk, if you’re going to accept a 6-10% return on investment, why bother investing in real estate and all its associated risks and stress causes at all? You could have much safer and more liquid investments with the same 6-10% returns in the stock market.

    When it comes to returns, go big or go home (where “home” is index fund investing) 🙂

    • Emily

      Reply Reply December 12, 2017

      I totally agree with the importance of not making emotional decisions when you’re investing. That’s a huge thing a lot of newbie investors have to overcome! I love your point about not investing in real estate for a 6-10% ROI because you’re right….you can do that in the market! We invest in the real estate for the tangible aspect or it and the fact that we can get higher returns! Thanks for sharing your insights!

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