We were discussing options for payment as we don’t have a lot of capital at the moment, however they have a property that has a bit of equity we could tap into, but they already have a favorable interest rate.

Don't forget that a lot of these old gurus started when the interest rates were near 0% and the house was a half price of now with 0 regulations.

Hi Nate - It'd be worth asking the lender for a detailed breakdown of closing costs for this program, as well as an estimate of the interest rate you'd get with today's rates (they'll probably need to pull your credit to do this).

Eventually I realize that when I think about living on post-expense rental income, I’m treating the income as the “withdrawal rate”, in Boglehead parlance.

@Brandon VanTuinen  FYI the appreciation rate in City of GR is around 6% right now, so you're making around $24,000 a year just living there.

Also mortgage rates are dropping.

Postcards for example most people hope for 1-3% response rate.

Preferred returns would even be acceptable but not a straight interest rate play if the lender understands the structure. 

•Explore private lenders or hard money loans if you need higher leverage, though the interest rates will likely be much higher.

Thank you for this post I copied it and sent it to my office to save on drop box.Myself I grew up in the land business as my Dad was in the land business starting in the mid 60s and I started in 75..