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I predict a housing crash due to people buying homes over asking price, lacking equity if prices decline further. Foreclosure becomes likely if they can't afford the house, and selling won't yield profits. With anticipated layoffs and rising living costs, many individuals may face this situation.

I currently sit on 3 multi family homes I accumulated within 5 years. I paid 395K for the first one. If I’d waited to have 395k saved, I’d still wouldn’t have enough to buy it, because now a similar house sells for 650k

I understand and support 100% Dave's principles against debt, especially in a culture where people borrow their way of life. However, when it comes to real estate investment, if people waited to pay cash, less than 1% of people would end up owning anything.

i wish they asked the callers what their household income is more often. i know there are situations like these where they don't need to ask that at all but from the viewers side its just a super interesting and entertaining thing to know

I would add, keep back most of the rental money to account for repairs/maintenance/insurance/taxes, at least at first. Maybe build an account up to $15k to keep up with maintenance.

I bought my first rental last year for 199k my mortgage is currently 146k @ 2.85% if I put the house on the market today I would at least get 300k. On the other hand if I would have waited till I had cash it would have taken me 10 years to save up enough to buy that property and I know that it's going to cost a lot more than 199k in 10 years

I'm not rich by any means, but I was able to pay off the home I live in early by following Dave's advice. Every $1000 that 's paid early in the loan can save several thousand dollars in interest. The trick is to make the prepayments early in the loan. Prepay as much as can in the first and second year. Your extra dollars will have much more impact that way. So I'm grateful to Dave for his advice in that sense. However, there's no way I would ever be able to cash out a rental house, at least not in the community I live in (Seattle). Homes, including rental homes, start at around $700,000.00 I'm currently saving about $40,000 a year. So it would take 17 years to save enough to buy a home for cash! And by then it would have at least tripled in price.

I almost fell for a similar scam selling something where someone wanted to pay extra. Post office guy looked at the package and said, “nah, you’re not sending this. This is a scam.”

Please talk about reverse mortgages. I’m a real estate broker & it seems that everyone who does a reverse mortgage always ends up loosing their home to foreclose. Always older people…bad financial product!!!!!

Stay away from LEVERAGE! My late husband and I sold a commercial property. Financial advisors were telling us to use “leverage” to buy rental properties for twice the amount that we sold the original property for. We were afraid to do that and didn’t want to go into debt, so we paid cash for the rental houses and commercial properties we bought. Thank God we paid cash, because when covid hit, the restaurant we were landlords to didn’t pay us one penny in rent for more than two years and we probably would have lost it if we owed money on it. I also learned that I NEVER want to own property in Washington state or any other blue state again. After the covid debacle was over and Washington allowed restaurants to open again, we sold it and invested in Idaho.

Took 5 yrs to save for our personal home. Paid cash. 7 yrs later and making a family on the way and I’m about to pay cash for a rental. In a very expensive market

When you have some reserves and can comfortably put down a hefty down payment. Then you can continue to leverage debt as the property appreciates and you can pull some equity.

Before I hear him; when you have the cash to buy it

Been Debt Free 12 years doing the Ramsey Program . In 12 years I've bought 56 properties both Residential and Commercial with No Debt. It can be done.

Love this call.

I have seen a lot of people go broke/bankrupt with rental property. Be more careful than you think you should.

You don't need to pay of your mortgage to buy rental property. I own 9 properties including my own home, I owe nothing on 8 properties and the only mortgage I owe is my own home. It may not be the case today because of rising mortgage rates, but two years ago, I refinanced my own house, and bought rental property cash. I also cashed out my IRA, paid off the taxes on it, and bought another property cash. As long as you buy a good valuable income property, with decent schools, and in area with high employment, it's a great investment!

It’s not simply a matter of $. You have to want to be a landlord.

Kudos to George for admitting been scammed, that takes guts... these scammers .. I am sure he was a lot younger and naive.

I know this happens all the time but the sophistication of the bait and switch mortgage escrow wire fraud to criminal account is mind blowing. Additionally, when I was a Med student and then resident, I briefly hired a company to help navigate my student loan repayment strategies and PSLF. I paid this company. They got more and more difficult to reach until they disappeared. I know this happened to a lot of kids.

The problem is, the difference in prices depending on where you live. Here in Seattle, the cheapest houses (for fixers) are around $750,000. Nice houses start around $1,000,000. I've followed Dave's excellent advice on paying off my house early, and saved up enough for a down payment on a rental property. But I don't know anyone, anywhere, who has $1,000,000 lying around to buy a rental house. (I'm sure there are people, but not around these parts.)

He needs to update.. he is giving same advice from decades.. why would I pay off my 2% mortgage when I can put that money in just a savings account and get 5% on it. Or better, I bought 2 rental properties in 2020 by not paying off mortgage and putting 30% down on them. Both properties are up 100k each.. By Dave's advice I would still be paying off my 2% mortgage

I fell for one once that I gave my address and I was suppose ship the books there only could bought in USA there arrived at door. When the books arive she said was making trip Canada so made trip in person. Some dude come to door. Then I get nasty email when get back home. I sell books for $160 to local book store. There were over $500 new.

Awesome awesome awesome show

Residential investment properties for the casual investor (less than ten properties) have lost some of the luster during this past eighteen months of COVID, where the government has enacted eviction moratoriums and courts have shut down which made it impossible to evict. Then, if you are fortunate enough to build your investment portfolio, at ten properties, a lot of the federal and state regulations kick in, which impose yet another burden on the investor. If I had it to do over, I would concentrate on light commercial properties, such as a small retail shopping center. You don't have near the amount of headache as you do when dealing with residential tenants. .

Having 0 debt in boise is crazy. I live here and its expensive. Good stuff

Ok that’s crazy Dave. I understand but 20-30% down is fine you don’t have to pay cash for a home to invest in a rental. If you have a paid for house, emergency fund , invested, in more than sure you can handle a small leverage rental property

I own many rentals (10+), MOST people aren’t prepared for the maintenance issues that come up regularly. Don’t add the rental income to your monthly budget, you’ll be upside down before you know it.

If you do a segment on scamming you should try and sync with jim browning. He has a great channel on how he fights scammers

Is Dave changing is idea about using a good mutual fund and use instead an index fund? He recommends index funds a lot nowadays. Or is just for stashing cash while waiting for a big purchase, like a house?

Why should I wait when I can buy today with 20% down? Then pay it off in 6 years with rental income plus about $20K per year of my money in lump sum. It would take me longer to accumulate the full amount without renter contributions.

I have the option to buy my grams house for 50k and i can pay cash. It needs prolly 20k in fixes. I’m considering moving into it and selling my 275k home just to live debt free. I don’t like the house so i can always rent it and build one but I’m unsure which route to go which is how i ended up here…

how about renting in new york, buying a property in another state in cash using your 403b money.. pay it off.. would it outweigh all the taxes and penalty here.. need income.. looking for desperate measures

Don't think i could ever save up in order to buy a house for rental all in cash. I currently have 9 houses, 8 of which are rental properties. How we did it? Just paid the 20% down. As of right now... I have about 5 houses with mortgage and 4 smaller homes paid in cash. Renting most of them and fixing up 2. Not sure what Dave would say about the way i went about it but the renters are paying my mortgage so to speak and making profits since the rent is higher than the mortgage and have equity on every single house. For us... it's the long run that we're in for.

I have a 3 flat that’s rent out by section 8 tenants on got it by a fha. Loan 3.5% down. Was it a bad idea not paying cash for it? It was 375k

When your saving money for your first investment property your on the right path.

Man Idaho is like people scrambling to get up there because the housing market is hot

I don't get it. Just get a fixed rate loooong term loan and buy a property to rent it out in case the differential between your loan and the cap rate is existent.

I don't get it. How is utilizing leverage with a low rate on an asset that grows with inflation a bad idea?

Should I pay all cash when it's my first time, for my first rental? To learn kind of with no risk in terms of a loan?

Everybody keeps saying that if you can't afford to buy a house, instead of renting, buy a duplex. This way, there's somebody else helping you maintain the home. So, all those people from places like Bigger Pockets are wrong? Because renting is crazy risky. Landlords buy and sell. I've been thrown out THREE TIMES so they could sell. These all told us we could stay "forever."

Real estate seems cool but just isn’t for me. The capital commitment, hassle and the like just doesn’t fit my goals or preferences. But people who are able to build a serious portfolio and build a huge cash flow is pretty cool.

My answer before watching the video: pay with cash and don't let real-estate be more than 20% of your net worth. Let's see what dave thinks

What do u mean save the money to pay for a house in cash? In the area I live in the median house is $1,000,000 even 100,000 would be a lot to save. So I’m curious how u would do that in todays market working a regular job

This guy needs to learn the full scope of owning rentals. He doesnt sound very educated on it....like hes going to take this advice and just go and buy a rental without knowing the full scope.

Sure, Dave. I'll just pile up $750,000 real quick to pay cash for a fixer upper rental property. It'll only take 40 years since homes in my area have tripled in price over the past few years.

Can't believe I'll have to wait so long to get to this step 😩 I'm 23, still have student debt and rent an apartment. Oh well. Guess that's one less distraction. I wonder what price houses will be by the time I can afford one. Could be a whole different world (hopefully).

My home is paid off and I have cash to purchase a rental property but I struggle at the current 5% savings level to use that money on a rental getting $2000 to $2,500 a month. $350,000 x 5% = $17,500 in savings account vs $2,000 x 12 = $24,000 minus (taxes,Insurance,utilities,) you would be lucky if you woul clear $17,500

I'm considering possibly selling 20 acres to buy a rental house with cash

How do you feel about having a company manage rentals for a percentage of the income?

The best time to plant a tree was 20 years ago. The next best time is today. - Chinese Proverb

I got rid of my eBay because of all the scammers

Idk how Ramsey thinks it’s reasonable for people without generational wealth to pay off their own home and buy a rental property in cash. Sure you can save up and do it but you’re losing out on cash flow in the years you’re saving up. Leverage can be used in a responsible way

For average people who makes 70k-120k, saving to buy rental with all cash? most likely will not catch up with rising property price and inflation. One may not ever buy a rental... what I did was learn to run the numbers right and conservatively just in case things happens... and things will always happen. then get a investment mortgage based on this numbers. Sorry but buy all cash just not reality for most people.

Dave thinks I need his approval to buy a rental property? Uh, should I sell what I have now, and wait for his email?

Personally I prefer Robert kiyasakis rules for using other people’s money to buy real estate

Ryan Pineda joins the chat

YUP TO ALL OF THIS AND IM THERE NOW !!!! LOL !!!! THANKS DAVE !!!! Im in the SPEED OF CASH MODE NOW !!!! 6 PAID OFF HOUSES SOOOOOO FAR !!!!!

These guys are great

You asked for fine print ideas right? How about tiny homes? You know, houses that are about the same size as a mobile home, but have the aesthetics or cosmetic looks of a real home. But, the prices of those have skyrocketed like everything else. Are they still a value? Are they worth buying and living in? Would you recommend them for a family member that you love to live in? What are the maintenance costs for those tiny homes versus a regular sized home? Thank You.

Why not just buy the rental property and use it as a saving account and throw all you extra money in to it ?

I get all my financial advice from TikTok 🚀🚀🚀🚀

Pay cash for a rental then fix it up to increase the value whilst paying cash for everything. Then once the values gone up refinance it and pull all of your money out to go and buy another, keep doing this and you'll have a few rental properties, this is an example of good debt. For example, pay 100k for something, spend 50k on it, now it's worth 200k. Refinance at 75% and you get that 150k back.

Woah Dave finally recommending an index fund 😂

Investor pro is a scam. You don't need them. Rental property is a headache and risky. Buy a REIT index and start with as little as $1.

May take people years to get their house paid for. In the mean time, they’re missing investment opportunities to gain passive income. If my debt is paying me for years, then I truly don’t see the downside. Using debt as leverage is what the majority of extremely wealthy people do. If I had the time to pay everything cash, of course I would. Just not the case for everyone.

Rice and beans !!!! 💪🙏

I resent that George said Tom Selleck is washed up. 😄

I make $20 an hour and am $40,000 in debt total with student loans and a car. It would take me about 30+ years to pay off a house to rent out while renting my apartment. Is there no hope for me? Rental properties is how I want to build my wealth but I guess I need a job that makes $100,000 a year which kind of defeats the purpose

How long would it take for a person with regular income (50k to 70k) to pay off a house and then rent it💀

This is quite literally the WORST way to get into real estate...

Why would you pay off a house on a low interest rate. Needs context here and in high priced markets like Seattle and SF good luck throwing in money m/m to buy 1M properties that keep creeping up higher in price. You are better off using some leverage.

Phishing with a “Ph” not “Pe” we know what you meant Dave. ♥️

I know someone in Idaho who bought a 3br 2 bathroom house for under $300k. I told her $300k barely gets you a parking space in Northern NJ!

Title lock is a scam. I would like a report on that.

Follow Dave's advice and you'll be in "baby steps" until the grave. Investigate the term "leverage" and never pay all of your cash for a rental property.

In California you can’t buy a house cash, you need loans

Scams - I know two woman personally who have been catfished out of over half a million dollars combined! Older single women may be very vulnerable, need to speak to them.

I like this idea, but in contrast to Grant Cardone philosophy it is the complete opposite. Most people cannot save enough to buy their own home, never mind a second or third property. When you say put your money into Mutual funds, how much are you stashing each time?? 50 bucks, 200 bucks, 1000 bucks or what?? Cos from where I'm sitting it'll take you years to build enough for your second property. Just curious because people on these types of shows talk a lot with no real substance and all seems mind bowing.. Of course it could just be me.

I don’t like this advice. People living on the west coast can’t buy rental properties for 75k. Takes a long time to save up 400k for a second house.

If your paying less than 3 percent on your mortgage why would you want to pay off your house? Would it be smarter to use that extra money towards the stock market or real estate? Don''t understand the old school logic of paying off your house.

I don't think it makes much sense to buy a rental property right now. There are opportunities but the ROI is so much smaller then past years.

Paying cash for a rental is crazy

Dave must be sponsored by the IRS.

I'm not going to watch yet...paused at 1 second in. Going to take a guess that Dave is going to say you must buy it with cash and no mortgage

Bad advise. Unless the caller is making $1MM+ in a low cost housing market, he will never be able to create the economies of scale necessary to make residential rental real estate work without leverage. Dave knew nothing about the caller's financial situation other than that he had no debt and sent the caller off on a track fraught with peril in an industry he has no prior experience in. That was irresponsible on Dave's part.

People, if you save up for buy your first rental in cash, then yes it will take longer (Just like Dave said), and yes the one particular property that you’re looking at now will be out of your range by the time you have the cash. But GUESS WHAT, once you have the cash just FIND another property that you can afford. Why would you get married to one property that you can’t even buy yet. Use common sense people. Dave is not “out of touch” with real estate reality.

Normal ppl arent able to save 3-400k cash like that. Lets say you're able to put away 2k a month towards it. Itll take you over 20 yrs to buy your 1st Real-estate property.

First house should be a rental and he lives in one off apartments.

This is sound advice but not reasonable. Debt can be a good thing if you leverage it correctly. Who can save up enough to pay all cash on rentals!????

I want to see Dave dance on TikTok

Is too much to save up 200,000 to buy a rental property. I’ll take 30 years

How's someone going to save enough to pay hundreds of thousands on properties before they are like 50 years old? I love Ramsey's points but this I take with a grain of salt

Whew, they must have never seen Blue Bloods! Tom Selleck is far from washed up!

Impossible advice if you live in California ( Bay area)

Do one on celebrities pitching that medicare help line.

Buying a rental property for cash isn't a great use of capital. Most investors have a finite amount of money to invest. Buying cash you don't get any tax breaks either. Leveraging debt to make more over time is a better approach. Making sure you have good cash flow is the key to a great rental property. Mortgage rates are barely beyond inflation, so that extra buying power you get with a loan is next to nothing

Good advice, especially today with Biden's 10% inflation, high home prices, high loan rates, and the US 32 trillion dollar debt. Managing RE is another time-consuming job and requires knowledge and experience.

A person who was worth north of 100 million (in real estate) once told me to leverage the rental properties at 50% and take that money and reinvest in more rental properties. My wife does not allow this but if she did I would do this.