Leverage: Question

[Venetian]

I'm trying to understand leverage when buying assets.

If I have a website that makes me $500 a month, I can leverage that and use that cash flow to finance and buy a house for $100.000 that will give me $500 a month rented.


But what's the point of that?

I end up with a 20-year debt and roughly the exact same "cash flow" every month that I had before having any debt at all.

Even if I found a "fixxer upper" kind of deal and bought it for cheap, I may end up with like $100 per month additional cash flow at the end of the deal... For assuming a 20 year debt. It doesn't make any sense... so big a risk for so little cash flow.

Am I missing something?

How do people use leverage to generate additional cash flow when buying real estate or businesses?

Is there any book that explains how to leverage cash flow to buy assets to generate even more cash flow?

 

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[Rickson9]

Upi qsucmin op vji iyenqmi ot vjev $100l ot xez vuu nadj vu qez gus $500 qis nupvj ug detj gmux. Lpuxoph jux nadj vu qez gus detj gmux ot onqusvepv vu fivisnopi jux nadj miwisehi ot eqqsuqsoevi (og epz).

Tqieloph gus nztimg O xuamf piif vu tii ev mietv $850 qis nupvj op detj gmux (e.l.e. uqisevoph qsugov) gus $100l fiqmuzif op siem itvevi. Uvjisxoti vji miwisehi dep'v ci katvogoif.

 

[hatterasguy]

O'f qez $100l gus e qoidi og ov xisi xusvj ev mietv $150l(us nusi) vji fez O caz ov, epf sipvif gus $1,200-$1,500(us nusi) e nupvj.


Zuas nupiz ot nefi xjip zua caz.

Vzqodemmz fiemt moli vji ecuwi deppuv ci gopepdif, edvaemmz ovt e wisz sesi cosf vjev dep ci. Tu zua iovjis piif $100l up jepf us e jesf nupiz qesvpis xju dep xsovi zua e $100l djidl.