Date: Fri, 13 Jan 2006 17:07:18 -0600
From: Tad Borek 
Newsgroups: misc.invest.financial-plan
Subject: Re: Pay down or IRA?
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Steve M wrote:
> I currently owe 30k on a piece of rental property at 6.125.  I have 12
> more years on the mortgage.  The rent pays all the interest and a
> little toward the principal.  I have to kick in around 100.00 a month
> for taxes and insurance though.
> 
> I have 5k that I can either use to pay down the mortgage or partially
> fund my wife's and mine IRA.

Steve,
 From a purely investment-oriented point of view, many people don't look 
to pay off rental properties in full, let alone pay them down early. 
That's how you get the most out of this type of investment. Talking here 
about a rental property - not your home that you live in.

So a generalized answer is that you typically would not pay down a 
rental-property mortgage early...certainly not if it means giving up an 
IRA contribution. Maybe your case is different though...what benefit do 
you see to paying off some of the mortgage ahead of time? Do you get a 
tax benefit from the rental, when you net it all out?

-Tad