How much to risk

[Bill E.]

I am looking to buy my first property which will be a duplex. I'm seeing two that I like, one is 150,000 and the other 160,000. They should cash flow around 200. This seems like a lot of money to borrow and that it will take so long to pay off. Is it better to buy cheaper with the intent to pay off the mortgage fast? Or do you not even factor that in.

[Jerry Kisasonak]

I could be wrong, but it seems like you'd be paying retail for this property. To eliminate risk, we've always bought properties well below their intrinsic value. Then if the market drops or if you need to liquidate, you can get out and still make money - or worst case break even.