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Updated over 5 years ago on . Most recent reply
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Debt to Income Ratio
I realize there is never a clear cut answer to this question, but what would you all recommend is a solid debt to income ratio? I recently purchased my 7th rental property and I have a monthly debt to income ratio of 48/52. I am 25 years old and bought my first rental property using cash at 21. Since then I have taken out an LOC on the equity of that property, purchased my next house, termed out the line, opened a new LOC, etc. to accumulate what I have now. My question is, does there come a point where I need to focus on paying down my debt or do I keep purchasing 1-2 properties a year and focus on the positive cash flow?
Thank you all. This is my first time posting. I look forward to connecting with you all.