http://www.biggerpockets.com/renewsblog/2009/02/09/leverage-friend-foe/ Learn, Network, Invest Sat, 11 Feb 2012 01:23:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.biggerpockets.com/renewsblog/2009/02/09/leverage-friend-foe/#comment-64117 lance shutter Mon, 23 Feb 2009 15:33:31 +0000 http://www.biggerpockets.com/renewsblog/?p=3977#comment-64117 Well said, but given the alternatives in this climate any cash on cash return in excess of 5% is outstanding and given the still stable markets with appreciation the internal rate of return can still be approaching double figures. Plus you own a "tangible" asset not paper which has value only to the Boardroom. Also assuming your hard costs are fixed ie. Mortgage, Taxes with rent escalators your returns continue to grow. And opposed to selling stocks where you just pay the taxes you can defer via 1031. Well said, but given the alternatives in this climate any cash on cash return in excess of 5% is outstanding and given the still stable markets with appreciation the internal rate of return can still be approaching double figures. Plus you own a “tangible” asset not paper which has value only to the Boardroom. Also assuming your hard costs are fixed ie. Mortgage, Taxes with rent escalators your returns continue to grow. And opposed to selling stocks where you just pay the taxes you can defer via 1031.

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