We have 2 long term rentals, one with 4 years into a 30 year mortgage at 2.8% owe $173K, another 3 years in 10:1 adjustable arm 2.8% owe $128K. I would like to know what would be the best options for us:
1. Pay off both mortgage asap. How would rental income be treated if we have no mortgage to write off against?
2. Pay the minimum amounts for both and invest the rest. But plan to pay all off before retirement
3. Pay off the adjustable arm one asap
4. Pay off the 30 year old asap
About us.
- mid 50s, dual income
- 2 college kids, one professional school, both fully funded for educational needs
- 7-10 years until partial-full retirement
- No mortgage in primary home
- no other debt
- top or near top tax bracket
- 5 mil retirement savings (not accounting for the homes)
- max out all available retirement vehicles as W2 (spouse) and myself (W2 and 1099), including solo401K already
- some parental support responsibilities in the range of $20k/yr.