Originally Posted by OneHungLo

Tommy, let's use a real world example.


We each have $100k a piece.

Tommy buys 1 house with cash. Tommy's earning 10k a year in rental income

OneHungLo buys 10 houses and puts down $10k on each house. OneHungLo takes out a $900k mortgage for 30 years. OneHungLo is breaking even early on, but as the mortgage gets paid down, OneHungLo is earning rental income.


At the end of 30 years -

Tommy's 1 house is now worth $200k making him $20k a year in rental income.

Onehunglo's 10 houses are now paid off (thanks to his tenants) and are now worth $200k a piece ($2 million in total) with $200k a year in rental income.

Who would you rather be?


^^ This is just rudimentary real estate investing. You don't have to be an "economic guru" like you claim to be able to grasp this.