Scenario: You own a house that costs $300,000 (zero debt) and you are considering leveraging...
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Scenario: You own a house that costs $300,000 (zero debt) and you are considering leveraging your home. How could three houses that cost $300,000 each (total 900,000) BUT have $200,000 in mortgage debt each (total $600,000) make you wealthier than just one house that is fully paid? Which do you choose (A or B) and justify your answer: Choice A: One house fully paid (300,000 with zero debt) -or- Choice B: Three houses not fully paid (total cost 900,000 but total debt is $600,000)
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