 Again back to risk
So let’s say you buy 10 rent houses using all debt. What will you do if all of the tenants move out?
That’s right; all 10 houses that you have a mortgage on are empty. Now you are stuck paying the mortgage payment.
What if you had paid cash for all the house, and then they emptied out? The loss on the bottom line would not be as bad.
At some point in our lives, something bad is going to happen. We all need to be prepared. Having no debt what so ever is a great way to prepare. Having extra cash at the end of the month will help most people deal with problems.
Please understand that I am not trying to be a downer. I actually am an optimist. But I also know that something bad could happen at any time. I want to be prepared for that in the best way possible.
Hope everyone is enjoying this debate.
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