Real Estate Rookie Pay Off Properties or Buy More with Mortgages? (Rookie Reply)
Sep 26, 2025
Delve into the debate of whether to pay off a single property or leverage multiple investments. Explore creative house hacking strategies beyond renting by the room, like using ADUs and short-term rentals. Discover the challenges of finding deals versus securing financing, as the hosts weigh the difficulties and share insights on market dynamics. Tune in for valuable real estate advice and perspectives on leveraging opportunities in today's market!
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Blend Debt Philosophy With Strategy
- Dave Ramsey's all-debt-is-bad stance fits personal finance but can limit real estate growth.
- Tony and Ashley recommend blending debt-free comfort with selective leverage based on goals and life stage.
Run Side-By-Side Financial Scenarios
- Run numbers comparing one paid-off property versus multiple leveraged properties over a time horizon.
- Use cash-flow, equity growth, and management overhead to decide which path wins financially.
Set A Personal Leverage Rule
- Decide your acceptable leverage and set a max loan-to-value rule for deals you buy.
- Use conservative LTV (e.g., 70%) to capture leverage benefits while reducing stress.
