Updated 13 days ago on . Most recent reply
Looking for advice on debt
Hey BP,
So I am starting to build up my portfolio of long term rentals in my area. I purchase them with 20 year DSCR loans. My typical strategy is the brrrr method. Which I am always at or below the 70% of the ARV.
My main question is about the debt. My father was always very frugal and bought most of his properties with cash or bought them slowly throughout his life. Which he accumulated 20 over his life until he was in his 70's. But this day in age looks very different than when he grew up. So that being said what's your thoughts on all of the debt for buying rentals? Is that crazy to just keep buying all of these rentals and have the debt? And yes they cash flow anywhere between $200- $800 per house, one of them is a triplex. My dad would think I'm crazy to have a couple million in debt in rentals. He's always been a Dave Ramsey guy and I've always been a Robert Kyosaki guy. I just want to be smart about this. Thanks guys!