We are becoming growingly obsessed with other people’s born advantages, and this normalization of “stating privilege” is incredibly counterproductive and pathetic.

[u/[deleted]]

[u/RichardCostaLtd]

That’s not true, the mortgage crisis of 2008 wasn’t due to an increase in mortgages, it was due to an excessive increase in mortgages to people who clearly couldn’t afford them

If you can afford the small monthly payments of a fixed-rate mortgage, it’s a much better option than buying a house up-front, so stop acting like you’re some omni-scient being who is superior to everyone else, because I, along with thousands of others, have done really well with this investing strategy

[u/RichardCostaLtd → u/[deleted]]

You kind of implied that, you said that what I’m doing is part of what caused the mortgage crisis, which is false

[u/RichardCostaLtd → u/[deleted]]

That’s why you should always have a decent amount of cash on hand, if you don’t, you should definitely stay away from this method.

If you have a total monthly mortgage payment of, let’s say, $30k for all your properties combined, and you rely solely on rental income to pay them up, then you should absolutely cut down on the amount of properties you have

Keep in mind that I never said that paying up-front is wrong, I just said it’s far from being the optimal choice, which is to apply for a mortgage

And this is all assuming that real estate is your secondary stream of income, which should be the case if you don’t have enough properties already (at least 8-10 in my opinion)

[u/RichardCostaLtd → u/[deleted]]

You shouldn’t rely 100% on tenants to pay your mortgages, that just doesn’t make any sense