All Forum Posts by: David Morgan

Here is my question, 

If you use your LOC, you are leveraging your equity to build wealth. Don't you want to leverage debt (Other people's money)? I am reading one of Robert Kiyosaki's books and he talks about debt vs equity to obtain wealth. He leans heavily toward using debt and NOT equity.

It seems to me(and I am no expert) that just paying off the mortgage early would be something to strongly consider (option #3) and leave your LOC alone.

I was not aware that you could get a HELOC on an investment property. I guess it never hurts to ask! Wouldn't using a HELOC leverage your equity vs getting a mortgage that leverages debt? I'm reading Robert Kiyosaki's book "Retire Young and Retire Rich" and he strongly encourages to leverage debt and not leverage equity. I would like to get your thoughts on this. 

It seems to be a very tough strategy(fix/flip) in the Austin area. I know of 2 flippers right now. One might make a 15k profit(maybe) and the other said: "my profit is going down every day." I also see the circus road shows that swoop in and have 1 or 2-day seminars "teaching" about flipping. It seems to be better business teaching rather than flipping. 

Cool @Joseph Cornwell

I am curious,  I hear about investors that grow quickly and I can't help but wonder what their debt load is.  I knew somebody that acquired 14 rentals rather quickly and when the economy had a down turn, 10 of them were consistently vacant. After a while, he went bankrupt.  How have you been able to manage your debt load?  

Thanks in advance! 

Hey Austin, 

is this property available? 

Hello Andrew,

My apologies, our contracts are the most up to date there are. Unfortunately, We don't give them out. Sorry. I am sure if you keep looking you'll find some.

Welcome to BP.

I hear the market is pretty HOT in the Dallas/Fort Worth area. I'm sure you can find good REI meet up group near you. Check out meetup.com to find some.

Great post! Thanks for the info. I love learning about diferent investing options.

Hey Jon,

I know it is a lot easier to connect the flush valve kits before you install it. I think it might be a little difficult to install them after the water heater is already installed.

With regards to flushing them, It is real easy (with the kits installed) 

Check out youtube. Search for "Maintaining a Tankless water heater Matt Risinger"

I basically followed this 2:30 advice w/ my heater.  I also know that I have hard water where I am (not super hard) and I flush mine every 8mo.(for about an hour) and according to the manufacturer, that is okay (only w/ white distilled vinegar and not an acid based descaler)

Hope that helps.

I have a tankless water heater (Rheem) for my personal residence. It runs off of propane and I have been very happy with it so far. It recently sprung a leak and I had to get replaced. The good thing about it, Rheem actually stood behind their warranty and they sent me a new one for free! I just had to pay for installation ($300).

I would not put in a tankless on a rental property personally. I do not have a water softener where I live and my well water is pretty hard. I use white distilled vinegar to descale it every 8 mo. (It takes about an hour to descale it).

It does take some maintenance so be aware of that. Also, if you get one, buy the flush kit valves ($100). It is 2 valves that attach to the intake cold and outlet hot. It allows you to shut the water off to the water heater and flush the unit very easily.