Epiphany or Fooling Myself
Started real estate investing last year and focused on one or two unit properties. My goal this year is to expand and to do that I will need to leverage exiting properties. I got a mortgage quote yesterday for two properties I own outright and now want to leverage and use the money to buy more units under a roof.
Initially when I looked at the numbers I was disappointed as it looked like the lender was taking the bulk of my profits. But when I did the math I am making the same 9% and 13% ROI...just smaller capital since I got back money to reinvest. Now my thinking is, "I will do better on the ROI with this new money"...at least that is the plan. I actually see some properties that I could do very well with, which seems to be a definite win for me.
Am I seeing this clearly?