Nick Krautter compares two rental property strategies: letting the mortgage pay down over 15-30 years versus structuring deals for positive cash flow from day one. He prefers combining immediate cash flow with long-term appreciation.
If you're thinking about buying an investment property, there's kind of two main ways to look at it. One way to look at investing is I'm going to buy a property, let my, uh, rental income pay off that mortgage over 15, 20, 30 years, and at the end of that time frame, I'm going to have a property free and clear, and then your income is going to go up dramatically. Then my preferred method is that you have positive cash flow from day one. You add in that positive cash flow to the asset appreciation over the whole life of the investment. And look, it turns out usually that makes more money.
