Quote:
Originally Posted by Travis  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.
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I don't want to sound demeaning, but let's all stop making meaningless arguments that don't hold water. If you would have had the cash to buy the houses, you'd still have it now and you can pay off the mortgages. If you didn't have the cash to pay for them then, you will sell them pay off the mortgages and be right where you started off - no houses. Of course, the smart thing would be just to get new tenants.
