re: Would you pay off a 6.5% rental?

quote:

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Just not wanting to eat that rent loss when they are in school is the main thing for giving me that itch to do it.

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I would just pay yourself out of that cash that you're getting a savings rate. I'm all for getting out of debt, ordinarily, but I would keep "good" business debt on the books. Last thing you want is to get out of that mortgage, get the kids through, and then have to leverage it again in "who knows" what the lending environment will be.

If you have the $193k, than you have, effectively, 8 years of payments (literally 87 months, but discounted I would call it 8 or even 9 years), plus you'll make interest on the way.

I would charge (and collect) a nominal rent, too, with these kids signing a real lease. It is never too early to learn about the real world.