Mortgage vs pay cash

[Corine Rosado]

Why is it better to hold a mortgage on 2 or 3 properties for the same cash flow than 1 property paid off with great appreciation? I’m confused

[Mike McCarthy]

@Corine Rosado because in 10,20 or 30 years, you’ll have 3x the appreciation. So not only do you have the (same) cash flow during that time, but every month your tenant is paying down the mortgage.

Even though you don’t see the extra hundred or so dollars in your wallet for each mortgage principal payment, it’s going towards the equity and will be in your pocket eventually!