I would suggest finding an operator that executes the “infinite returns” model, meaning you have your original invested capital back (say $50k) in about 4 years and still remain as a limited equity partner in the deal.

Being a little snarky here, if banks can lend out with zero reserves kept, that would be infinite money, so what’s a cool $25M against that?

@David Cam Hello David, I have used HELOC 2 times so far ro purchase investment properties.When you use HELOC as a downpayment and the rest you get mortgage - your have non of your money 💰 in the deal, which means INFINITE returns 😉.

Infinite Jest by David Foster Wallace inspired me to set my goals higher and think harder.

I didn't want the liability and it can be a bear to clean when you get tenants that fail to clean it at all.I had a problem with tenants overloading the single bar/shelf and it pulling from the wall.

We all just about agree it is better to have cash flow and the note paydown to free and clear over time, but in a circumstance where the OG poster could get another rental using no money and break even on a monthly basis, I see that as a positive.Clearly, the choice is cash flow + principle paydown, but if you can get only principle paydown for return using no money, your final return is infinite and the OG posters captial he does have could be used to concentrate on cash flow + pay-down/appreciation.

So, even if I have $1 of yearly positive cash flow, then I have an INFINITE return.

My friends who kept their Chemistry books are making huge bucks, traveling the world (all expenses in top shelf places paid) as Chem Engineers and the like.

Money may seem infinite, but I assure you it is finite.You never answered me as to what will occur when interest rates increase and a larger and larger portion of federal money must go to simply pay off interest on $16 billion plus.

I would have a cap on how much I can contribute each year.With a whole life policy I can contribute an infinite amount to my policy.