50 year mortgages seem like a terrible idea unless you’re a mortgage lender. Seems like they would delay equity build-up, force you to pay nearly double the interest over the life of the loan, would mean the average person who bought a house to live in wouldn’t own it outright until way past retirement age, and the decreased monthly payments might push housing prices higher. Plus I think the decreases in monthly payments aren’t likely to be significant. Maybe there’s some way to game it if you’re not planning to keep a property for very long, but it looks to me like it’s a way to fool people into thinking that housing is more affordable without doing what we actually need, which is increase the number of units overall.

Guessing maybe there’s a tax benefit that I’m not savvy enough to think of?

Hi Kevin - what state are you referring to? I don’t think there’s an early payment discount in my county or state. (California)

lolol I guess I misspoke. Not sure we have a tax strategy other than we did a 1031 exchange so we wouldn’t lose the gains we made on a formerly primary residence that we rented out for too long after my partner and I bought another primary residence together using funds from the sale of her place as the down payment and renting out mine instead of selling because it was upside down and our homeowners association was in the middle of a years-long lawsuit against the builders. So our tax strategy is basically “what the heck should we do now?!”

But that said, we bought the Palm Springs place because it’s a more affordable market than San Jose, CA and we love it there and we figured we would use it as a STR until we could retire there. So maybe that’s a tax strategy??

Yes! Great video. Thanks Ryan!

@Mark Rich California. Our short-term rental is in Palm Springs and medium-term rental is in our backyard in San Jose.

Hi @Steve Reynolds nice to “meet” you! Our Palm Springs rental is working out great. We’re accidental STR property owners though, so we’re trying to learn after-the-fact. Also, we got our place right before Palm Springs imposed a tight limit on STR licenses, so that was a lucky break. We are so very fortunate to have very knowledgeable co-hosts, who put together a great team for us, made our listing sparkle, and are all-around fantastic partners. (They also introduced us to Ryan Bakke’s community.)