Are Debts Good Or Bad? 
Tip Sheet Credibility: 6
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| Some debts are bad debts. especially if they are on a house in which you are living and not earing from. However, if you have a loan from the bank for say USD 120,000 and each month you pay USD 300 back AND you rent the house out for 800 USD = Good! Tip Credibility: 6 (Best Tip!) |
| If you buy a house, especially now in the USA, then you want to consentrate on buying for CASHFLOW, not for CAPITALGAIN!!!
capitalgain, means if your house goes up in value, you win, if not you loose! Tip Credibility: 4 |
| CASHFLOW means, that you ALWAYS WIN! cashflow, is money you earn from people renting, for instance, your house, and not from the value of your house.
Cashflow is always there as long as you have tenants... Tip Credibility: 4 |
| Therefore, it's good to buy a house in a residential aria, near a factory, which is NOT shutting down, or near a school or college. Somewhere where people live and rent! Tip Credibility: 4 |
| NEVER buy a house in an aria where poor people live, even if cheaper, the house could be a downfall. Why? Because if people are poor, they will be falling behind in paying, trying sometimes to steal (not saying they will) and you'll have to kick em out! Tip Credibility: 4 |
| If you buy a house in a middle class aria, you have already more chance that you will get longer time renters, people who can pay their rent and you won't have to go searching every few weeks for more people to rent your house or apartment. Tip Credibility: 4 |
| Once you have more money from rentals or elsewhere, you can UPGRADE your rental property by legally "swapping" it for a bigger peace of property. That means, you can get another loan on some other house you want to buy and minus the loan from 1 u have. Tip Credibility: 4 |
| Or you can sell your old property and buy a new one, that brings you in more cashflow then the older one!
Tip Credibility: 4 |
| Another possibility is to keep your old rental homes and simply grow buying up more and more and more! Tip Credibility: 4 |
What do you know about that?
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