You should
have a plan B in case you don’t have enough cash flow to meet your debt
repayment target.
That is, if
your cash flow doesn’t turn out to be as strong as you expect, how else will
you reduce debt?
Counterintuitively,
sometimes borrowing more now is the best solution to having fewer borrowings in
the future.
For
example, if a client has a very large home loan, often I will recommend
borrowing to buy an investment property.
The reason
is that at least it gives them something to sell in the future (and they can
use the net cash proceeds to reduce debt).
RealRenta has all the tools that a property manager hasbut for
less than ¼ the cost of a property manager.
Join now and the cost is less than a cup of coffee a week to manage your
rental property.
RealRenta also has a free vision, so why not check it out.
Jason Gwerder
Wednesday, 1 November 2023