porcupine wrote:If you are definitely past the point of deciding whether or not to hold on to the property (i.e., you are holding on to it regardless of this discussion) ...
- if you are planning to buy a house in the next year or so, I suggest that you do not pay off the mortgage.
- if you are not planning to buy a house in the near future, you could pay off the mortgage. But note that the trade-off is that instead of paying interest on the mortgage balance, you will end up paying taxes on your rental income.
For a detailed analysis, read a book like this one. You could also spend some time on other websites that cater to landlords such as Mr.Landlord. The point being that you can reduce the amount of tax owed by using depreciation and other available deductions to lower your taxable rental income.
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