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 $$
After checking how much interest I will be paying after paying off the house in most cases it is more than the value of the house itself. That's with an excellent FICO score. After seeing that I decided just to rent save money and buy out the house in cash if I still want it then. At the meantime just put those saving in index funds.
I'd like to have two paid off and use one for maintenance costs and the other to stack a down payment for future properties. I'm a medium-low risk tolerance type.
@Someonebutnoone10 your a bigger target. Asset without debt = value. Also having the mortgage company I between is another line of defense so that was correct
This is why the majority of real estate investors roll properties into an LLC so that your personal home or property can't be taken if you are involved in a lawsuit.
My average ROI is 15% when i put 25% down. By paying 100% cash, all I am doing is lowering my ROI. If my loan is 6%, my ROI goes down from 15% to 9%. By getting a mortgage, I can still take advange of all my tax incentives without spending as much $$
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.
Why’s that? Mortgage company doesn’t back you? Newbie here
@Someonebutnoone10 your a bigger target.
Asset without debt = value.
Also having the mortgage company I between is another line of defense so that was correct
This is why the majority of real estate investors roll properties into an LLC so that your personal home or property can't be taken if you are involved in a lawsuit.