You'll want to make sure it cash flows each month.

If it's worth $1.3 million today, it will be worth $3 million or more in 20 years, you'll have paid off the debt (or most of it), you'll earn at least $3 million in cash flow over those 20 years, and you'll have tax benefits.

A cash-out refi could allow you to set aside some funds as a reserve or at least pay down your debts so that your lines of credit (credit cards etc) can act as your emergency reserve when more bad things happen. 

It's the cash you put in that's your cost for the property. 

Purchase price: $330,000 Cash invested: $40,000 Hey everyone, I wanted to share a personal story about a property I purchased and renovated in Hudson County, NJ.

I cash flow them to buyers on lease options with a hefty option payment up front to me.

.💰 The Cash Flow ConnectionThink about it - both investments are essentially money-making machines.

And not to mention no stock matches the dividend rate one can get in real estate with such low risk/volatility. 20yrs ownership, oh-yeah, cash-flow on renting it would be HUGE now so it's easily comparable to a 20%+ monthly dividend, if not more.

Buying a second home to rent out is a solid strategy, but be sure you understand the cash flow, including mortgage, taxes, and potential vacancies.

- My first thought is offering cash, but the home owner would most likely just let it go to foreclosure because of how low the offer would be. - My second thought is offering some cash and taking over the loan - there are no liens on the property yet.