How to Model Mortgage Payoff following Sale of Rental Property

I own:
Rental property A (single family home) that has zero mortgage balance.
Rental property B (single family home) that has a current $80K mortgage balance.
Primary residence property C that has a current $150K mortgage balance.

I have created a profile that shows a sale of Rental Property A in 2020 in which I continue to make continuing normal mortgage payments on properties B and C.

I want to see economic impact of using proceeds from sale of Property A to make lump sum payoff in 2020 of mortgage for property B, property C, or both.

1. How do I do that for property B Rental Property?
2. How do I do that for property C Primary Residence?


dan royer's picture

There's not a simple field for "pay off mortgage" in 2020. (this feature has been added to the primary home in MaxiFi). So given that the sale is 2020, rather quickly here, I would try to show a two-mortgage on B or C or both. The funds will not be available until 2020 when you sell the A property. So that may create some liquidity constraint in 2019 but it may be close enough if you have the liquidity.

Otherwise, I think you'd have to remove the mortgages from the B property and use special expenses to represent that mortgage in 2019-20, including the payoff of that mortgage in 2020. The primary property can be sold and repurchased at 100% downpayment to respresent that payoff. (be sure to set real estate commission on sales to 0% in Settings).

So you either just pay it (them) off in 2 years per your mortgage set up, or use special expenses/receipts to represent these transactions.


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