Do you agree with him?

[Tod R.]

Ok, I admit it. I listen to Dave Ramsey. Today he had a caller ask about REI. Here are some of his major issues:

1. Be Patient. Most beginners get all excited and think they are going to make a killing, but they end up paying too much. Be patient and wait for a steal to come along.

2. Hold long term. He only buys with a 15-20 yr expected hold. Wants to be in a growing area to take advantage of appreciation in value.

3. Invest for Cash Flow,Appreciation,Depreciation. Take advantage and understand all of these components.

4. Pay All Cash. Do not use debt to buy RE.

5. Don't Pay Over 70% ARV-Repairs. Make sure you know what is the current value and don't pay more than 70% less the cost of repairs. Hard to find, but be patient.

Do you agree? #1, #3 and even #4 certainly makes sense, but what about #2 & #4?

Now, I know that there are many who rehab and flip. So I'm not sure that falls under this definition of RE Investing. Those of you who hold and rent, what is your time frame? Is there anyone on BP, or perhaps in America(besides Dave and his employees) who pays all cash? As you may know, he views debt biblically, and percieves it as a master/slave relationship. I like this idea as a theory but is there an ultra conservative compromise, say 50% LTV?