Are you living off cash flow alone?

The use of leverage alleviates more risk as less of your own personal cash would be used and it creates a greater cash on cash return.

For rentals, focus on cash flow and metrics like cap rate (target 8%-10%) or cash-on-cash return.

I offered $100k cash sale or a $150,000 bank sale.

Offer Cash/30 day close 2.

Whatever you do, leverage smartly—DSCR loans can help you buy more without draining your cash, and depreciation will handle your tax burden for 2024.

They had exhibited the desire to pay down debt and had cashed out the parks before us that had agreed to owner finance.

This is much lower than the costs associated with refinancing.Benefits of Mortgage RecastingLower Monthly Payments: The most immediate benefit is a reduced monthly payment, which can free up cash for other financial goals.Save on Interest: By reducing your principal balance, you’ll pay less interest over the life of the loan, potentially saving thousands of dollars.No Credit Check or Appraisal: Unlike refinancing, recasting doesn’t require a credit check, income verification, or home appraisal, making it a quicker and simpler process.Keep Your Current Interest Rate: If you have a favorable interest rate on your current loan, recasting allows you to maintain it while still lowering your payments.Drawbacks of Mortgage RecastingRequires a Lump Sum: Not everyone has the cash on hand to make a significant lump sum payment, which can make recasting inaccessible for some homeowners.Doesn’t Shorten Loan Term: While your monthly payments are lower, recasting doesn’t reduce the length of your loan.

In fact, many of our clients will concentrate their cash into one of the purchases and even purchase it with no debt if possible. 

I’m currently targeting properties in the $200K–$500K range, depending on the location and potential cash flow.