Paying Cash for SF Rental homes

[Ron S.]

Was wondering everyones thoughts on Paying Cash for SF rental Homes. I bought my 2 Sf Rentals Cash and have really enjoyed it. It has made it stress free not worrying about monthly payments. This way between tenants or durng rehab your not stressing a payment. I realize some people wont agree with missing out on deductions and leverage. I know i could purchase some more property if i did cash out refis but hate to take on the debt. Maybe this is a mistake I realize rates are awesome but not having that debt over my head is a good feeling. And not having those mortgages really puts me in a great cash flow spot to save alot of money. Please let me know your thoughts.

[Brian Burke]

Not only are interest rates great, but the real estate market capitulated recently resulting in very favorable acquisition pricing right now. Those two factors together make this an excellent environment to accumulate property. There is a strong thesis that asset values will increase over time, and those that take full advantage of this confluence of fundamentals are poised to become very wealthy (or wealthier). Utilizing the inexpensive leverage currently available allows maximum asset accumulation.

All that said, the choice to invest levered or un-levered is a personal choice that is dependent on individual goals and risk tolerance. Perhaps you will miss out on levered wealth accumulation, but you will sleep well at night. Kudos to you for at least being in the game.