Originally Posted by
TransWorld
Take a loan out against your free and clear house. Use as down payments for one or more rental houses. Make sure your cash flow, interest rates, taxes, depreciation, property management fees, maintenance, empty rental percentage, etc. works. Likely could fund 3 more houses, own 4, total, at 25% down with a 75% mortgage.
It’s something I’ve thought about. And honestly, it was the original plan all along except my wife didn’t want to finance and I haven’t been able to talk her into it (she is NOT a money person, just knows debt is bad). That said, we are VERY close to being completely debt free for the first time in our adult lives and it’s making me not want to finance anything else either. At the rate we’re going, we can probably have 10 or so rental units when I retire, free of debt, in addition to 401K and IRA savings. And that’s without financing.
But yeah, my original plan was to finance against the rental to purchase more rentals and thought about it enough to have a plan in place to do it. Just haven’t been able to convince the other half.