Excellent points, and there may be many more people looking for a place to rent after they find their mortgages are no longer sustainable due to job loss or everything so high priced they have to make some bad choices.There’s a lot of different debt one can take on. Dave Ramsay focuses on consumer debt, and I agree with him that it’s generally bad.
But debt can also be used to purchase income-generating assets…typically by businesses but entrepreneurs and especially real estate guys also do it. Done right, this is good debt.
As an example, real estate guys who own rentals can pull equity and this also can be good debt, because the renters are paying it down. Pulling debt equity isn’t taxable, but selling for a profit is taxable.
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