Analyzing Rentals for Cash Flow & Paying Cash vs. Getting a Mortgage
Analyzing Rentals for Cash Flow & Paying Cash vs. Getting a Mortgage
Episode #428
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Most investors buy rental properties for cash flow, and the fear of losing money keeps many rookies on the sidelines. How can you be certain that you’re going to make a profit before you buy? Today, Ashley and Tony will show you…
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The Dave Ramsey thing he said is absolutely untrue.. why are 99% of y’all looking at this as a get rich quick plan
My average ROI is 15% when i put 25% down. By paying 100% cash, all I am doing is lowering my ROI. If my loan is 6%, my ROI goes down from 15% to 9%. By getting a mortgage, I can still take advange of all my tax incentives without spending as much $$
After checking how much interest I will be paying after paying off the house in most cases it is more than the value of the house itself. That's with an excellent FICO score. After seeing that I decided just to rent save money and buy out the house in cash if I still want it then. At the meantime just put those saving in index funds.
I'd like to have two paid off and use one for maintenance costs and the other to stack a down payment for future properties. I'm a medium-low risk tolerance type.
When you pay in cash there's still the risk of losing it all in a lawsuit. That's the biggest con.
I now work with my brothers construction company and they use BuilderTrend. Amazing software. HUGE capabilities and ability to involve vendors and MANY users to interact with the software. Great for managing projects and simple for employees and subs to also provide updates while at the projects at the end of the day