Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 7 years ago,

User Stats

41
Posts
5
Votes
Michael Faudoa
  • Rental Property Investor
  • San Diego, CA
5
Votes |
41
Posts

Pros and Cons of Paying Off a Loan and Not Paying off a Loan

Michael Faudoa
  • Rental Property Investor
  • San Diego, CA
Posted

Hi all, my name is Michael and I am a new member here on BP. 

I have a question that I am hoping someone can answer- 

Why do some people advocate that you never pay a loan down because a loan is a wealth generator? I know that a benefit of paying off a loan is increased cash flow, but I am curious how not paying down a loan can also generate cash. 

In Brandon Turner's book "The Book on Rental Property Investing", he states that you have your tenants paying your mortgage for you, and that he could work a minimum wage job for the rest of his life and still retire a millionaire because of the tenants paying down the loan. I don't understand though? 

Loading replies...