Today's Focus

Current Goal: Automate Savings and Mortgage Paydown

1) Extra $1,100/mo. to mortgage
2) $1,000/mo. to short-term savings
3) $400/mo. to investing

Previous Goal: Eliminate Mortgage on Rental Property
Interest Rate is 5.125%!

January 1, 2019: $59,592
August 11, 2020: PAID!


Search My Frugal Miser

Tuesday, August 11

My Rental Property Mortgage is PAID!!!

 I did it.  

This morning I paid off the mortgage on my rental property.  And I did it in under 11 years.  Back when I started this blog, I was reeling from an unexpected job loss and had over half a million dollars in debt.  Fast forward to today and the only remaining debt is the mortgage on my primary residence.

I love this rental property: 

  • With added options I only paid $103,000 for it.  DR Horton abruptly decided to stop building in this neighborhood (this was during the housing crisis) and was liquidating the remaining spec homes, so I got a ridiculous deal on it.  As a side note, another builder stepped in a few years later and finished the buildout of the neighborhood.
  • I've had the same tenant the entire time.  One tenant, and rent has always been paid on time.  Rent has steadily increased and the tenant is currently paying $250/mo more than when they first signed the lease.
What I didn't love was the interest rate.  When I bought it, 5.125% was the going rate.  Today, it's about 2 points higher than prevailing rates.  My outstanding balance was too low to justify refinancing, so I decided a year ago to focus on paying it off.

It feels great to check this off my list.  Now onto the next financial goal.  Details coming soon!

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