Payback period

1 Reply

Hi, I'm new to this site, I just figured I would ask for some opinions on finding deals that work. I quickly realized that spending the least amount of money out of pocket makes the best return on investment. Therefore payback period on equity is extremely important to continue to buy more property. What would you say is an appropriate payback period?

The way I see it, with these crazy low rates stretch it for as long as possible. 

But under 2 assumptions:

1) It's fixed rate. 

2) You're planning on actively reinvesting. 

That way just like you'd keep borrowing at, say %5, you might as well lock it in now and stretch the payback for as long as possible. You're effectively borrowing constantly at today's low rates...