308: Rookie Reply: Don’t Chase Cash Flow! Use THIS Metric to Analyze Your Deals
Real Estate Rookie
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The Benefits of Keeping Your Debt Used in the Short Run
Ashley: I think that's why there's a benefit of trying to keep that debt used in the short run. That way you can kind of anticipate or adapt to some of those interest rates change a little bit easier. So say you pull $50,000 off a line of credit and you're going to use it as your down payment and say at the time your interest rate was 4%. Okay. Your monthly payment would be $166. Say that it jumped to 9%, which it's very common right now. Your payment now is $375. Think about if you were like $167, I can cover that. And now it's $375. That's a car payment for
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