Dave Ramsey Investment Approach

[Cody Brown]

Hey, guys!

So I was wondering if any of you follow Dave Ramsey and what you think about his advice on buying real estate? For those of you who don't know, Dave Ramsey suggests a zero debt, 100% down policy for practically everything. He advises not to buy a rental property until you can completely afford it in cash. 

I was wondering, how feasible is this? Is it a good strategy? If you have done this before, what are the pros and cons and would you suggest doing things this way?

Thanks!

[Steve Vaughan]

I followed Dave's debt snowball plan and baby steps to get out of consumer debt ($87k), but don't pay all cash for rentals.

Dave was burned by callable real estate mortgage notes back in the 80's.  The long-term fixed products we use today wouldn't have been able to bk him like those did.

I use intelligent leverage for RE and try to stay at or below 80% to avoid PMI. I am accelerating commercial mortgages because they are higher risk (adjustable and callable), but for long-term, fixed residential mortgages with strong down payments I would and do use those @Cody Brown.