All Forum Posts by: Andrew Neal

@JD Martin really liked your take and I am going to go back and re-listen to your episode for sure. My plan is to use leverage initially and then start paying off. 

Makes perfect sense to me, thanks for sharing your insight. I also totally agree with @joe splitrock in that as far as using leverage to scale but once I get to a healthy number whether that’s 10, 20, 30 or whatever doors then focus on paying them off.

@Caleb Heimsoth I like you're approach. I definitely agree that some mix of leverage and cash is what seems best and fits with my long term goals. 

I also like what @Kurt Dieringer mentioned about dealing with 8 tenants instead of 40, very true haha.

@Jay Hinrichs good point about the type of tenant and type of property.

It really boils down to your personal goals and risk tolerance. As always, thanks to everyone for pitching in I am always fascinated about people's "why" since there are so many different strategies out there.

I know many of the posts focus on the forums focus on max leverage for scalability and I get that and to a degree (especially in the beginning) agree that leverage can be great.

I am curious who in here is buying with either cash or buying with the intent of paying off the entire mortgage for max cash flow.

Would love to know your rationale behind the strategy.

@Joshua D. I agree with a lot of the comments above. My wife stays home with our son and we live off of my income. I never once think about her as not contributing because I know the value she brings in taking care of our son far outweighs the money she used to bring in from corporate W-2 job. My guess is she feels like you sit around and don't "work as hard" as she does and maybe you do or maybe you don't I don't know your setup. 

Biggest thing is creating a salary for yourself. I have had my own side business for almost 7 years (not in real estate) and always pay myself from it. Figure out a monthly number you're happy with. Feels good to write yourself a check each month from income you created.

@Matthew McNeil haha thanks for the generous offer!

@Jonna Weber you're now the second person to mention the Boise area. I know of at least 2-3 families from down here who either have moved or are planning to move that way. Another few have gone to the Kalispell Montana area. Thanks for sharing your experience!

@Matthew McNeil and @Martin L. You both have shared so much valuable insight and I appreciate your participation in this thread. Giving people lots to think about. Thank you!

@Matthew McNeil the use of recasting is interesting, I don't think I have heard of anyone using that strategy. Could you give an example of how you use it? Assuming you bought a 200K house with 25% and have a mortgage of 150K on it? Do you then save up cash to make the lump some payment toward principal and have your lender recast at that point? Are you doing 30 year mortgages and if so how much quicker do you think this strategy will allow you to pay off the property? It sounds like you want to own free and clear properties for max cashflow in the future.

Also Coeur d'Alene is beautiful! I have spent a ton of time in Lakeside Montana and always travel through Coeur d'Alene.

@Jameson Sullivan yeah that's an interesting point but I know plenty of high wage earners here in the bay area who are choosing to rent because of prices continuing to go up so I guess everyone has their reasons. I know Tim Shiner mentioned this a bit in his BP podcast episode since he is in Southlake TX which is a high income area.