How to escape the mindset??

[Marco Morkous]

So I’ve purchased my first rental, it appraised way above value as is! I used that to get an appraisal line of credit, will use that money to spruce it up then refinance and cash out! Heck of a first deal thank God. My thought is, how do I get out of the mindset where I mind that I have debt. I know I have positive cash flow and that’s good debt but debt is debt. I’m always thinking well what if for some reason one of the homes I have doesn’t rent out, in that case it’s just debt. What do y’all think?

[Account Closed]

Sorry, its not just about reading that con artist Kiyoskai's book. The way to think about it is risk management. Debt represents risk. You have to take some risk to make a gain. Whether its risk of capital you already have or capital you don't (which is debt). So how much risk should you take and for what returns? What does that risk represent of your total financial situation. So should you take the last 10K out of your account and put it into a 100K rental? I would say the risk is too high. Should you borrow $100K for a $500K property when your net worth is $2M? Sure, that's a manageable risk. Also what is your income relative to debt payment? If the mortgage is 10% of your income and you have some faith in the security of that income, its not a big deal. If its 40% of your income and your job is shaky then not so much. Its a lot of factors, not a black and white issue.