Debt-free living is a cult. I love debt. What’s wrong with debt?
I was thinking about this the other day. Great way to save for down payment. Not to mention the saved utility costs by using the showers at the workplace…seems way more cost effective to live in an RV than to rent a room for $1.5K+.
Debt is great during economic boom. It’s an anchor during a recession.
It depends on what kind of debt. Credit card debt is obviously bad. Car debt is also bad. Primary mortgage debt could be good or bad depending on if you are living below or beyond your means.
Investment property debt could be good or bad depending on whether the investment makes sense.
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Avoiding debt no matter what is pretty irrational. In non-recourse states like CA there is pretty much zero downside to taking out a mortgage. It’s actually better than renting. With rent you get kicked out the month you stop paying. With mortgage you can drag it out for a year or two, rent-free.
I suspect the debt-free cult came about because of the Great Recession. It’s the same thing as the depression baby. People just keep fighting the last war.
In general primary mortgage debt should be good since lenders don’t allow you to borrow too much.
Old school practice for seniors. At that age, you care less about wealth growth.
Ok for single males or couple. Ladies may not want to try to live alone in a RV.
Isn’t only the purchase loan non-recourse? Once you refinance you lose that. Does it have to be primary residency to be non-recourse? We average a recession every 5-7 years. We probably won’t see another Great Recession, but we will see plenty more recessions.
Gee! I know people crying wolf who lost 7 properties and are now proud owners of a new one. They just walked away when the recession caught them holding too many properties but no takers.
I know cases where they used straw men to buy a home, and because appreciation was almost immediately they refinanced right away. Money for the realtor, the loan officer, the seller, escrow, etc. The last guy holding the bag with the cat in it got a bad luck. Of course, nothing happened to them.
This is a non-recourse state. Change that and you will see many people walking away from playing investor.
Only California? I thought is for the USA?
12 “non-recourse” states of Alaska, Arizona, California, Connecticut, Idaho, Minnesota, North Carolina, North Dakota, Oregon, Texas, Utah, and Washington you are potentially in luck! - See more at: Twelve Non-Recourse States Let You Walk Away From A Mortgage
What did I do now?
Did I say CA was the only non-recourse state? 
Darn Hanera, that’s not the point! The point is walking away because this is a non-recourse state.
Relax! Drink a cup of COVFEFE and you will feel fine. 