Ramsey vs Kiyosaki - To borrow, or not to borrow?
I am a big Dave Ramsey fan, and I have been for years. I am debt free, except for my house and intent to stay that way. Well, at least I intended to stay that way. I recently read Rich Dad, Poor Dad. Robert Kiyosaki's philosophy is completely opposite of Mr. Ramsey's. His intent is to use OPM (other people's money) for real estate investing.
While listening to the BP podcasts, everyone mentions Rich Dad, Poor Dad as a book to get ideas from. (They even make fun of it.) I got the ideas, now here is my dilemma.
If I want to get started with my first buy-and-hold strategy this year, I have to borrow money. If I am completely true to Dave Ramsey's Philosophy, it will take me at least six years to cash-flow a rental (based on my current budget, and a loose prediction of the future condo/TH prices in my area).
Though I understand the risks of borrowing, I am too naive to know the rewards.
I would love to hear how people started with their first home, and if borrowing is the better way to go.
Thanks for reading. -Michael