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RE: ScaredyCatGuide to Real Estate: Make Your Money Work For You Using Real Estate

in #money7 years ago

Break this down for me: I’m still using leverage to have more properties for roughly the same amount of money out of pocket as if I were to purchase with cash.

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If you have 100k rather than buy 1 house at 100k for cash, buy 5 houses at 100k using debt, after you service the loans you will have about the same cash flow but after 20 years you will have 5 houses not just 1.

That's right! Exactly what @djk said. Use 20k each for down payments as opposed to just spending 100K on one property.

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