P&i pay them off or io

That is why you should take it slow and reduce your risk, the less risk you take the less money you make. Reducing risk could be something simple as building a bigger emergency/reserve fund.

If you had 10 properties and were living week to week this can be very risky and no emergency fund is very risky. However having 10 properties and living week to week with 100k in an emergency fund is not as risky.

 

Well said

 

insn't IO only for 5 years anyway? Or can you just keep extending/ refinancing? do the banks ever stop you from keeping refinancing to IO?
seems to me if you dont get growth (certainly more likely nowadays) then there's a risk you're just going backwards/ providing a service for nothing. at least with P&I at the end of it all you own it.
i have always struggled with how p&I is only such a small amount more. My wife and I have no non deductable debt and a fairly decent income to devote to repayments. Our risk appetitie isnt so much that we are tapping out our serviceability. so we are going p&I and can always switch to IO online if we need to. that said i dont really know what im doing.

 

If they're all IP's I'd:

• go Interest only (without a shadow of a doubt)
• have offsets for all 3 loans and dump any extra capacity/cash into those.

It's extremely important in this game to have cash at call buffers. Going P&I takes some of that control away from you and gives it to the bank - never a good idea.