Buddy told me I was crazy for taking cash out on a rental property, glad I ignored him

My friend Dave said I was making a huge mistake pulling $25k out of a duplex I own in Phoenix. He kept going on about debt and risk and all that. Well I used that cash to put a down payment on a second property last spring. Now that second place cash flows $400 a month, and Dave is still renting. Has anyone else had a friend give you terrible refi advice that you just ignored?

2 comments

2 Comments

the_elizabeth1mo ago

Debt can burn you fast if that next tenant stops paying.

david7391mo ago

You mention your buddy Dave and his "debt and risk" speech... that's the same kind of advice people give all the time about everything. It's like the default setting for most folks. They see any kind of borrowing or risk as the same thing as being stupid, but the real world doesn't work that way. I've seen customers at work turn down a short-term loan to fix their car because they were scared of debt, then end up paying triple later for cabs and lost shifts. It's the same pattern. You can't play it safe with everything and still get ahead. Sometimes you just have to bet on yourself and tune out the noise.