Principal Pay Down, Amortization Schedule Tax write off

[Brandon P.]

Hello All, 

I know investors say principal paydown is  a reason to invest, but when you look at the Amortization schedule for even  a sub 100k loan 30 yer fixed @ below 5% interest rate you are likely paying over $200 a month in "non write off" investor interest  and the tenant is likely going to be paying less than $100 a month in principal pay down, which isnt anything for most of the loan.  It is likely that half us will be dead or half dead by the the time the tenant pays substantial principal payment on the loan. 

Obviously your Cash On Cash return is less on an all cash buy. 

 Is it always smart to finance a property at low interest rates?

What are your thoughts?