MORTGAGE or PAY OFF (by Dan [VA]) Oct 7, 2009 12:19 PM
MORTGAGE or PAY OFF (by Wallace CPM [VA]) Oct 7, 2009 12:24 PM
MORTGAGE or PAY OFF (by IN [IN]) Oct 7, 2009 12:25 PM
MORTGAGE or PAY OFF (by ManateeAlley [FL]) Oct 7, 2009 12:26 PM
MORTGAGE or PAY OFF (by Nancy [IN]) Oct 7, 2009 12:41 PM
MORTGAGE or PAY OFF (by Jason PA [PA]) Oct 7, 2009 1:31 PM
MORTGAGE or PAY OFF (by Elena [PA]) Oct 7, 2009 1:44 PM
MORTGAGE or PAY OFF (by MrRational [MD]) Oct 7, 2009 2:17 PM
MORTGAGE or PAY OFF (by Pat [VA]) Oct 7, 2009 2:42 PM
MORTGAGE or PAY OFF (by IN [IN]) Oct 7, 2009 2:46 PM
MORTGAGE or PAY OFF (by p m h [TX]) Oct 7, 2009 3:27 PM
MORTGAGE or PAY OFF (by Dan [FL]) Oct 7, 2009 4:31 PM
MORTGAGE or PAY OFF (by p m h [TX]) Oct 7, 2009 4:35 PM
MORTGAGE or PAY OFF (by Dan [FL]) Oct 7, 2009 5:25 PM
MORTGAGE or PAY OFF (by p m h [TX]) Oct 7, 2009 5:39 PM
MORTGAGE or PAY OFF (by tyler [NC]) Oct 7, 2009 5:55 PM
MORTGAGE or PAY OFF (by Reid [KS]) Oct 7, 2009 6:17 PM
MORTGAGE or PAY OFF (by Dan [FL]) Oct 7, 2009 7:06 PM
MORTGAGE or PAY OFF (by 574-Brad [IN]) Oct 7, 2009 8:31 PM
MORTGAGE or PAY OFF (by eddie [KY]) Oct 8, 2009 5:20 AM
MORTGAGE or PAY OFF (by Kevin [NY]) Oct 8, 2009 6:10 AM
MORTGAGE or PAY OFF (by p m h [TX]) Oct 9, 2009 4:51 PM
MORTGAGE or PAY OFF (by Rentitnow [ON]) Oct 16, 2009 12:57 AM
MORTGAGE or PAY OFF (by Dan [VA]) Posted on: Oct 7, 2009 12:19 PM Message:
State Specific Question About: VIRGINIA (VA)
Hi,
I want to buy a rental property, and wondering if I should mortgage it(after 20% down) or just pay in full. I was told to do mortgage it to take the tax deduction, but I was thinking if I pay in full, I don't have to worry about paying interest, in the long run I'll save more.
Thanks
Dan --63.251.xx.xxx |
MORTGAGE or PAY OFF (by Wallace CPM [VA]) Posted on: Oct 7, 2009 12:24 PM Message:
Keep CASH and stay LIQUID * there are THOUSANDS of landlords who thought just like you and would *O*W LOVE to have a mortgage and CASH reserves --64.12.xxx.x |
MORTGAGE or PAY OFF (by IN [IN]) Posted on: Oct 7, 2009 12:25 PM Message:
I have all mine paid off, and it is a good feeling. It also keeps one in a budget, and that is a good habit.
Too many live on other peoples money, and pay an extra price for it. --68.58.xxx.xx |
MORTGAGE or PAY OFF (by ManateeAlley [FL]) Posted on: Oct 7, 2009 12:26 PM Message:
If you can get a mortgage at lets say 5%, the cash you kept in reserve might be used to leverage below market purchases, making the return on your money significantly higher....if you're a sharp buyer. --66.176.xxx.xxx |
MORTGAGE or PAY OFF (by Nancy [IN]) Posted on: Oct 7, 2009 12:41 PM Message:
Cash is king right now. Keep yours unless you can pay for a property and still have a lot left over. --65.55.xx.xxx |
MORTGAGE or PAY OFF (by Jason PA [PA]) Posted on: Oct 7, 2009 1:31 PM Message:
Writing off interest means that you are paying interest, which is $ lost. It is up to you what to do, whether you want to buy more properties or other things. I would get a mortgage because I need leverage and want to buy more properties not everybody is the same. --74.99.xxx.xxx |
MORTGAGE or PAY OFF (by Elena [PA]) Posted on: Oct 7, 2009 1:44 PM Message:
I would pay off my mortgage, but not everyone feels the same way. I know I will sleep better once we own our properties free and clear. Good Luck! --72.81.xx.xx |
MORTGAGE or PAY OFF (by MrRational [MD]) Posted on: Oct 7, 2009 2:17 PM Message:
lots and lots of variables.
The TWO biggies: your age/health vs number of years to retirement and/or dependents you have; nature and amount of other (earned) income you have.
In general, having things paid for has to better than not (on a personal level ala dave ramsey) but this question isn't about personal.. it's about a business enterprise where the # rule has always been OPM. make your money using other peoples money... and banks, tenants seem happy to cooperate.
I'd say a mix of the two is the answer with the ratio of owned to borrowed dependent on how much time you have left to stay in the game balanced against your risk tolerance (just as it has always been).
--65.127.xxx.xxx |
MORTGAGE or PAY OFF (by Pat [VA]) Posted on: Oct 7, 2009 2:42 PM Message:
Ours are paid off, but we are in our sixties. Someone has said that the mortgages are a benefit in sue happy people, not seeing you as rich. My DH just has a thing about "being in debt" since he retired.
I worked for a R/E broker many years ago that believed in OPM, & "keeping your cash up front", & he lost everything he had.
Even if all paid off, if you can't pay Uncle Sam, & Aunt IRS, you can still lose out, so nothing is certain but death & taxes..... --76.5.xx.xxx |
MORTGAGE or PAY OFF (by IN [IN]) Posted on: Oct 7, 2009 2:46 PM Message:
OK, I am almost 70, now when I was under 40 I was working on being over 1 M in debt, inflation took care of that desire.
At 70 deflation is chopping me down a a bit, and I am glad I have diversified, gold and stocks so I should be ok, if I die soon....
Only you can answer your own question, and when answered tomorrow the answer may change... --68.58.xxx.xx |
MORTGAGE or PAY OFF (by p m h [TX]) Posted on: Oct 7, 2009 3:27 PM Message:
I always sleep better because I have cash in the bank, only put down 20% and get 35% return on down.
let me see, all those who have paid 100% and need to sell because they have no cash....ummh good luck using your equity....% don't pay the bills. $$ pays the bills.
leverage. --68.191.xxx.x |
MORTGAGE or PAY OFF (by Dan [FL]) Posted on: Oct 7, 2009 4:31 PM Message:
I buy all my units so cheap that they are liquid. I can sell them all at a fire sale in less then a week for more then I paid for them. I hate leverage and always will.
I sleep better with all paid off units and cash in the bank. --71.98.xxx.xx |
MORTGAGE or PAY OFF (by p m h [TX]) Posted on: Oct 7, 2009 4:35 PM Message:
share with us Dan what your ROI is on properties paid 100% cash. --68.191.xxx.x |
MORTGAGE or PAY OFF (by Dan [FL]) Posted on: Oct 7, 2009 5:25 PM Message:
Not the best. The last one I did was 70%, but that was a fluke. I average around 50- 60% ROI most of the time. --71.98.xxx.xx |
MORTGAGE or PAY OFF (by p m h [TX]) Posted on: Oct 7, 2009 5:39 PM Message:
don't know where you are in FL, but congratulations. 70% is fantastic......heck, you should buy all of Florida............. --68.191.xxx.x |
MORTGAGE or PAY OFF (by tyler [NC]) Posted on: Oct 7, 2009 5:55 PM Message:
re-read mr rationals post/questions...
post more info and you'll receive more... --75.181.xxx.xxx |
MORTGAGE or PAY OFF (by Reid [KS]) Posted on: Oct 7, 2009 6:17 PM Message:
The barrower is slave to the lender. --70.246.xxx.xx |
MORTGAGE or PAY OFF (by Dan [FL]) Posted on: Oct 7, 2009 7:06 PM Message:
There are so many deals out there now. I could be busy everyday buying,selling and renting.
I have grown lazy over the years and I turn down many deals that come my way. I want to do nothing 24/7,but I can't because these killer deals keep coming. Just as soon as I got a break,three more deals fell into my lap. I need to find a way to shut it off so I can go back fishing all day. --71.98.xxx.xx |
MORTGAGE or PAY OFF (by 574-Brad [IN]) Posted on: Oct 7, 2009 8:31 PM Message:
Buy 5 at 20% down or 1 at 100% down? What's your goals? --66.228.xxx.xx |
MORTGAGE or PAY OFF (by eddie [KY]) Posted on: Oct 8, 2009 5:20 AM Message:
if your unsure why not put a big down pmt that why you will have smaller pmt to cash flow but still have some cash for repairs or down pmt on next piece of property. --72.49.xxx.xx |
MORTGAGE or PAY OFF (by Kevin [NY]) Posted on: Oct 8, 2009 6:10 AM Message:
I would base this decision on a few factors:
1.) What interest rate can you get? If you can get a low interest rate like most banks are advertising, say under 6% or so, the mortgage may be a better deal. Most signs are pointing to inflation, and if that happens, the cost of the mortgage gets cheaper in real terms.
2.) how much cash will you have left over? If you are cleaning out the savings to buy an investment property, I would get a mortgage. If you will still have a whole lot left over, then put it all down and enjoy the cash flow.
3.) Do you want just one? If you have the money to buy one outright, and you are confident and have the reserves to quintuple down, you may want to take that cash and either buy a larger place, or more properties. This may make you cash poor in the short run, but in the longer run you should become wealthier. --207.237.xxx.xxx |
MORTGAGE or PAY OFF (by p m h [TX]) Posted on: Oct 9, 2009 4:51 PM Message:
reid is short sighted. I borrow money at 5%, and then get roi 35% AND renters pay mortages. life is good.
cash is king. use other peoples $$. but do it smart.
as one poster said. buy 5 at 20% down, or one at 100% ? calculate them returns with roi. --68.191.xxx.x |
MORTGAGE or PAY OFF (by Rentitnow [ON]) Posted on: Oct 16, 2009 12:57 AM Message:
I hate when people think paying off a house is an investment.
Ok, you have say 100,000 tied up and are making say $100/mn profit. OMG! Why not start a savings account you would probably get more return!
Take that same 100,000 and put 10% on 10 properties that are making $100/mn and you are doing better! 10% is better than 1% return and someone else is takin all the risk! --69.171.xxx.xxx |
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