Thomas S. i just read your input from the post written by @alexander_parada about if he should pay down his current mortgages or buy more property. I generally agree that someone in growth mode should use any leverage available to them to maximize their gain, but isn't there something to be said about having decent chunk of equity in your property(s)? One who is more conservative may not want to extend themselves to the point of 100% financing on 30 properties as you described.
You assume the opportunity cost is 10%. Wouldn't I need to have a guaranteed 10% opportunity available to use this in my calculation? I understand your point, and agree to an extent, but using it as a hard number seems somewhat unrealistic in many cases.
I am curious, and just to make sure I am clear, if you were to analyze a property someone was purchasing for $100k with 20% down, you would add an additional $2k annually to the expense line for dead equity cost?
Thank you for the feedback.
