Best balance between leveraging and keeping debt ratio down

[Curtis Steineke]

I am in the process of taking what to me is a large sum of money and invest it in real estate as part of a 1031 exchange. I have always been taught that debt is bad and don't want to use all of it to finance properties even though I understand leverage, I am trying to strike a balance in my investment plan between having some paid off and some bought with a loan. I am looking to get both cash flowing properties like a duplex or quad plex and a couple single family homes. I want to buy at least one out right cash and the other two or three with a loan putting about 35-40% down on each of the two or three that I loan. I am also buying a SFH that I will be using for a all cash purchase, rent and then live in to cash out the money later on down the road to avoid paying capital gains tax on it. My plan is as I retire from the military I have a house to live in that's paid for and a steady income - retirement check and property income. I am still on active duty in the Army for a few more years so that helps with the conversion from rental to private residence timelines. Is this reasonable to strike that balance. Ideally I would like to have the loans paid off by the time I hit retirement age in about 20 years so going into my later years I have zero debt at retirement time. I would like to hear your experiences in dealing with a large sum of money and making smart decisions in striking the right balance of investments etc. or if there is such a thing. Thanks in advance.

[Michael Swan]

Presently I am selling all my pricey single family and 1031 exchanging for Multifamily apartment complexes in Northeast Ohio.  I started with 10 single family I purchased in 2011 and 2012 in San Diego.  Now I have 57 front doors and counting.  Just ironing out a purchase agreement for a 21 unit.  Soooooooo, in about 60-75 days I should have 78 front doors.  Current tax deferred cash flow $120,000.00 per year.  I have 4 more single family left in San Diego that I will be selling and 1031 exchanging this summer.  Maybe I will attempt a reverse 1031 exchange and buy a 2.5 million apartment complex.  In 8-10 years, I expect to have $1,000,000.00 in tax deferred cash flow.  If a lowly paid teacher that has a combined family W2 earned income of $80,000.00 befor taxes can do this, anyone can do it!!

Grant Cardone's 10x rule in action baby!!  He says that fear is false events appearing real.  I have a duty and obligation to have 10X goals and 10x effort to achieve those goals.  We are only limited by our self imposed limitations.

If you change the way you look at things, the things you look at change right before your eyes.

My goal here on Biggerpockets is to plant a seed in one future multimillionaire each week.  Pay it forward!!  Abundance for everyone.  Stay away from a scarcity mentality, where if someone has to win, then another has to lose.

I love this stuff!!!

Swanny