is there any situation where buying a property outright and then leasing - GoFuckYourself.com

quiet · 10-10-2004, 01:35 AM

is better than mortgaging and doing the same thing? your thoughts?

stocktrader23 · 10-10-2004, 01:45 AM

slapass · 10-10-2004, 01:55 AM

cap rate versus interest rate on the mortgage. If the cap is lower then the interest rate then you will get reverse leverage with a mortage. High end properties do this sometimes.

I have seen it in places where properties sell for a million or more and you can rent them for very little.

Seconday thought: Put your money into better postioned normal real estate and skip it.

10-10-2004, 01:35 AM	#1
quiet we'll miss you our friend. RIP Industry Role: Join Date: Sep 2001 Location: Fernie, BC Posts: 25,115	is there any situation where buying a property outright and then leasing is better than mortgaging and doing the same thing? your thoughts? __________________ we'll miss you our friend. RIP

10-10-2004, 01:45 AM	#2
stocktrader23 Let's do some business. Industry Role: Join Date: Jan 2003 Location: The dirty south. Posts: 18,781	hmm __________________ Hands Free Adult - Join Once, Earn For Life "I try to make a habit of bouncing my eyes up to the face of a beautiful woman, and often repeat “not mine” in my head or even verbally. She’s not mine. God has her set aside. She’s not mine. She’s His little girl, and she needs me to fight for her by keeping my eyes where they should be."

10-10-2004, 01:55 AM	#3
slapass Too lazy to set a custom title Join Date: Nov 2002 Location: Earth Posts: 14,622	cap rate versus interest rate on the mortgage. If the cap is lower then the interest rate then you will get reverse leverage with a mortage. High end properties do this sometimes. I have seen it in places where properties sell for a million or more and you can rent them for very little. Seconday thought: Put your money into better postioned normal real estate and skip it.