I think that's a valid concern, but my gut reaction is that he actually won't care too much after he has his cash/payments.

If you cash out equity in a property, you are "borrowing" that money from the lender.

There are some people that get lucky and earn cash quickly, but they generally hide the fact that it was pure luck or how much work was involved.

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.

Hi Max, I can speak about the Columbus Ohio market (as this is the market I specialize in) but yes, there is strong competition here and there are obviously some cash buyers and they will always have a slight advantage.

If the insurance isn't done properly, it's on the edge of impossible to cash the check because it's made out to the lender, my company, and the seller(s). 

Meanwhile, gross rents of $1,800+ for 3-bedroom single-families is an achievable figure, so it’s possible to generate cash flow if you lever modestly.There’s a bunch of other stuff that’s worth highlighting—the economy, demographics, neighborhoods, new construction, and more.

I borrowed $30k on a personal loan from Discover for 15% with no fees for a plot of land and paid "cash" for it.

After 45 + years as a real estate investor, broker, lender, fund manager and syndicator, I’ve become aware that the “dream” of many investors and investor “hopefuls” is to be able to generate enough cash flow to live off their real estate holdings and accumulate enough wealth to make “work” optional.

The city has seen over a decade of steady appreciation, and while prices are still affordable, there’s a clear upward trajectory in revitalizing neighborhoods.It’s not a market where you can just buy blindly, but for investors who take the time to understand it, there’s a strong mix of cash flow and appreciation potential.