Real Estate Bubble Myth

[Unique26]

@aak5454

sure, it give you max cashflow, but you are also increasing your liability (loan amt).

think of it this way:

if you don’t pay your credit card bill every month, you will have max cash flow from your income. does that mean you are making money? what happens when you credit card is max’ed out…

not a plan for success as a long-term landlord (IMHO). ARMs and I/O loan are OK for rentals, but always pay the full amt on the debt service (interest). Its deductable on your ScHE as an expanse against income received.

So the payoption arm is ok as long you do not chose to make min pmt at 1.5%, is that correct?

[wallacehobbs]

@Unique26

So the payoption arm is ok as long you do not chose to make min pmt at 1.5%, is that correct?

The Pay Option Arm just gives you choices on how to manage your money for other Real Estate Investments depending on your cash flow.

I use them all the time on multiple properties.

The bottom line Real Estate is only good for 2 main things.

1. To Live in

2. To earn money from