Quote:
Originally posted by Wayne at Pelican Parts
[B]...And, the more you pay off your mortgage, the less leverage you have, thus reducing the primary advantage of real estate. Most people don't realize this, but paying down your mortgage may not always be the smartest thing to do financially - you're reducing the leverage on your leveraged investment. I know, it doesn't seem like common sense, but it's what works. People like Donald Trump who "own" tons of real estate - they don't pay it down, they use the leverage from one property to buy another one. When the mortgage on one property begins to become paid off, they refinance back to a lower equity level and then take the cash and buy more leveraged investments (usually more real estate). 
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I hear what you are saying Wayne, and you are absolutely right, but... I'm old school I guess, I just don't like owing money to anyone for anything (if I don't have to). While not "leveraged", it's a nice place to be and having the cash flow from investment properties into your own pocket doesn't suck either. Never gonna be a Trump this way, but I don't want to be..."chump" is close enough for me