From Yahoo Finance: 2025-06-06 16:31:00

Real estate investors are facing a dilemma as low-interest mortgages become a thing of the past. With rates no longer at 3% APR, one investor is considering selling two rentals to pay off mortgages on other properties with rates as low as 4.50% and 5.75% APR, seeking advice on Reddit.

Most commenters suggest selling two rentals to pay off other properties, as it can lead to higher cash flow and reduce the most expensive line item for investors: monthly mortgage payments. Scaling back the number of properties can increase cash flow and reduce risk in the portfolio.

For the real estate investor, selling two rentals could de-risk their portfolio and provide higher cash flow. Outsized gains in their location may not last, so pocketing gains and reducing exposure to multiple high-debt properties could be a wise move to secure long-term financial stability.

As investors weigh the decision to sell rentals to pay off mortgages, factors like age, financial goals, and risk tolerance come into play. While the stock market may offer higher returns, paying off mortgages can provide peace of mind and increased cash flow, especially as retirement nears.

Arrived offers an alternative for investors seeking to invest in rental properties without the hassle of being a landlord. With strong returns and a growing selection of properties, Arrived aims to continue delivering value through careful market selection, property management, and strategic sales timing.

Read more: ‘Is It Irresponsible To Pay Off Two Relatively Low Interest Mortgages?’