Does it make sense to pay off a property?
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[{"id": "fae1o68", "text": "Of course it can. Nothing wrong with having paid off property. Many here will tell you otherwise, but you can do just fine not being loaded with debt. \n\nJust depends on how aggressive you want to be and how much risk you want to take.", "replies": [], "depth": 1}, {"id": "faei1ki", "text": "Over time, lower returns as cash flows are spread out in more moderate amounts across the hold period, rather than having large cash flows faster from capital events and lower recurring cash flows due to leverage. \n\nNot a bad thing necessarily. Imagine you are an owner/operator, and only have the capacity to self manage 2 assets, that generate a total of 100k in cash annually to you, with little or no debt on them. The same owner/operator may be able to lever them up, and own 5 assets, generating the same total amount of cash flow to himself annually but not be able to manage the workload.", "replies": [], "depth": 1}, {"id": "faevd7z", "text": "We will be transitioning back to a kind of Bretton Woods System sooner than you think.  There is the possibility of significant deflation, if Congress does not manage the process correctly.\n\nReal estate loans have been the primary mechanism of USD creation since the Nixon Shock, but that is coming to an end.\n\nThe people who got rich during the depression owned their real estate free and clear.\n\nYou cannot correctly analyze commercial real estate in the United States without understanding international monetary policy.  You can get by in the short term, but the world is changing rapidly.", "replies": [], "depth": 1}, {"id": "faf4y72", "text": "Most people in real estate would tell you that if you can\u2019t figure out how to take money someone is handing you at 4-5% and (even adjusting for risk) use that money to earn a higher rate of return, then you\u2019re really not good at real estate.  \n\nThat said, there\u2019s nothing wrong with being less leveraged than other people or even not leveraged at all. You\u2019re leaving a lot of upside on the table in exchange for a relatively small reduction in downside, but you do you.  I\u2019m WAAAAAY less leveraged than I could be, or than many of my peers.  I have my reasons for that and I\u2019m OK with what that means I\u2019m missing out on.", "replies": [], "depth": 1}, {"id": "faf900l", "text": "If your goal is cash flow, then It\u2019s always better to have multiple leveraged properties, than a single fully owned property.\n\nDo you see a higher cash on cash return than your APR? Then it\u2019s a no-brainer.", "replies": [], "depth": 1}]