Updated about 7 years ago on . Most recent reply
Long term payoff when over 50
How do you retire on your cash flow if the houses won’t be paid off until Youre over 80?!!
Seems the way to really do okay , is to not have mortgages.
Am I wrong or missing something ?
Most Popular Reply
Aurora, you are missing something...life isn't constant - and either is investing. Successful investors have an exit plan for every property acquired. A long-time hold doesn't mean forever. You'll buy, you'll rent, you'll sell, you may even knock the sucker down and build something bigger and better. One of my clients bought a house that was actually zoned for townhouses. The value has doubled - and at some point in time, a charming house will make way for new construction townhouses - and a really big ROI. So-o-o, have a plan to not only cash-flow but cash-out or build out or something more. Not having mortgages is great...but it brings other issues like potentially greater tax liability, fewer opportunities to acquire, etc. I like buying with cash - but cash is a short-term asset being used to acquire a long-term asset - if you look at it in its purest form. That's not the stuff of wealth management. Bottom line: Manage your holdings. Know when to sell. Know when to pay-off debt and when to use it to earn more. The fact that you're thinking this way tells me you're not the one to worry about...you're going to be a happy retiree one day. Rock on.