Originally Posted by dex
Is the 140 net of taxes?
Yes, the 140K is after taxes.
Jsutro, not sure I understand how swapping one rental unit for another would help me decide which mortgage to pay down? May not understand the question or comment or I may have misled you to thinking this was a wider question than it is? I was just thinking of the payments we make each month, one for $2640 on our primary residence that would drop to about $2000 if we apply the $140K there but if we pay off the rental unit mortgage, we would no longer have to pay the $1310 payment so to my simple thinking, it's a better approach. We would lose the interest as a deduction either on our house or the rental which would be about $9500 this year on the rental? The rental unit already has positive cash flow each month that is part of our income stream?
Our longer term intention is to keep the rental unit for another 2 or 3 years (hoping for a bit of recovery in the market), then sell both houses and use the equity to move to a less expensive location. We've had the house rented for about 10 years now with only 3 months where it hasn't been occupied and the cash flow let us pay down that mortgage to a level well below where it would be if we didn't pay extra each month, maybe not the smartest use of the money but never really was comfortable thinking I could invest it well enough to do better than the interest we were paying?
Thanks for the feedback so far!