Investment Philosophy (debt vs no debt)

[Farheen Naveed]

Hello BiggerPockets,

I'm new to REI and getting all the knowledge that can help me. At the same time taking reasonable actions too. We rented our first residential property which is fully paid off and now moving to 2nd which is rehabbed and we plan to live there for a year to complete one year residential requirement then rent out and move to next which will be our home for good. With our second property we invested $60k in rehab and it's our first rehab project. We spent more than expected due to series of unfortunate events 😂 but I believe experience cost money and we still make 10k equity so not so bad. My question to you!!

There are two kind of investment philosophies I'm learning about one is Dave Ramsay who says to get rid of debt (that's like my husband) and other is Robert Kiyasaki who teaches you about good debt and make money from Debt.
now our first house is fully paid and we had 50% equity in our 2nd house too and my plan was to refinance or cash out refinance to buy another following BRRRR strategy. What do you suggest? Don't you think this strategy keep building debt which comes with its own risks? What should be our steps to move forward?
Thanks

[Tommy Daggett]

@Farheen Naveed  Congrats on the first and second property! I am currently learning everything I can and working towards my first property. 

Anyhow, Dave Ramsey has great advice on beginner and intermediate money-management skills. I love his videos and have watched him for years. But,  I believe that is where it ends. He doesn't believe in debt for any reason.

I don't personally agree with that, especially if the person is financially responsible.

Tell me, if you found a really good deal and were absolute certain you would gain from it- that their was NO way you could lose, but you need to go into debt to acquire the property, would you do it?

I would.  

If you have high financial literacy and trust yourself, you should use good debt as a tool to leverage. 

You sound like a person who has got all they can get from Dave Ramsey and just need to move on. You utilized Dave's advice on building a sound financial foundation, now move onto more advanced financial and investment advice. Maybe Robert Kiyosaki? Maybe someone else.

While I can't tell you the next step, as I am not there yet, I can speak on having a very good financial situation (no debt, excellent credit score, written budget every month). I would take Dave's advice up to a certain point, and move onto a different mentor. A mentor more suited to your needs.

Hopefully that was somewhat understandable.

Good Luck.