I know a common thought on this site for about 1/2 the folks seems to be no mortgages or get out of them as quickly as possible. I've never thought that was too smart if you're trying to grow a business but I digress.

I am a firm believer in not just DEBT--- but a saddle made out of debt. When your the little guy with nothing-- how do you get something (S)? The fear factor of not paying it back is-- well thought provoking. Here's why. If I owe you 10,000. and default your coming after me the best you can. If I owe you 10,000,000.00 --- now you can try to work with me. Does it matter if you can't pay back 10K or 10M? No cause if you can't pay it-- it's over anyway. Not that anyone creating debt has that intention-- but it does happen.

I had at one time 80 VA loans. They were huge starting in 86-- one was for 34,000.00. A monster amount until I got 79 more. Right now I have 2 mort's that are on the down side-- 7 or 8 yrs to go and all principle (or mostly) so I'm just leaving those.

Nicole I'm sorry I wanted to point out one other fact. If you wait to pay off each property before buying another you may accumulate 3 properties in 20 years. When you finance and keep that cash moving and equity working for you-- that's the ticket-- compounding your debt until you stop buying.

Yep, not seeing that interest rate anywhere. And if anyone is paying close to 2 percent, it's usually only on up to a $10k balance and only if you jump through those hoops (don't do everything exactly right and the rate drops to .000005%), and that teaser rate will likely get lowered any day now (fine print says rate can change at any time).

Loans are excellent when you are starting out.

I noticed with my 15 year notes that I held them too long. That after paying them off, it was no easier to get another loan. Not what I expected.

I also did the math and saw how much the bank earned from me, also not good. I gave my teni money over the bank and somehow thought this was good.

The key is to break the tie to loans. With a small number, say four or five houses.

The person that has five homes paid in full, will accumulate money and begin to buy more.

Rapidly get to five houses...then pause for a bit. After some years get started again only this time borrow from friends. Pay them the interest and not the bankers.

myob - I am for debt exactly as you are saying. I've never understood saving up to buy a property cash when financing gets you the property and cash flow now rather than years down the road.