Dorothy has been a client since 1998 when she bought her first duplex in Torrance for $170,000 (don’t cry).

She called me to refinance as she has done over the years. She now owes $410,000, and the property is worth $850,000, maybe more.

When she gave me the rental income numbers of $4150, I pointed out to her that if we refi again with the mortgage, taxes, and insurance she will be only breaking even.

I suggested we look at a new property for $1,200,000, and she said, “No way, I can’t afford that!”

Well, with $300,000 down on a 4-plex, she could have NET cash flow (after all expenses) of $2500-$3000 on the new property. No need for cash when you have CASH FLOW.

She is now working with one of my realtor partners to buy her new property.  

Don’t make assumptions, get the facts first.