Dave Ramsey Is Wrong About Paying Off Your House

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Dave Ramsey Is Wrong About Paying Off Your House

Kris Krohn 03.06.2026 1 556 просмотров 52 лайков

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FREE guide: The complete pay off vs. invest comparison breakdown → https://kriskrohn.pro/payoff Dave Ramsey says pay off your house. I say invest instead. Who's right? In this video, I'm breaking down the REAL math behind one of the biggest personal finance debates — paying off your mortgage early vs. using that money to invest in real estate. By the end, you'll know exactly which move makes sense for YOUR situation. 🏠 What we cover: → Why "debt-free" feels safe but doesn't equal financial freedom → The actual dollar-for-dollar math: $600/month saved vs. $1,000/month earned → How a lease option investment stacks 4 income streams at once → The Passive Income First Rule — and why it changes everything → Exactly when paying off your house IS the right move 📊 Download the free guide — every number from this video in one place 👉 https://kriskrohn.pro/payoff 🔑 Key numbers from this video: • $100,000 mortgage = ~$600/month in P&I at today's rates • Investment property cash flow target: $1,000/month positive • 65-year national appreciation average: 4.65% (U.S. Census Bureau) • Lease option upfront option fee: $10,000–$20,000 non-refundable • Average American home equity: $300,000 Timestamps: 0:00 - The Dave Ramsey debate 0:39 - Two doors: pay it off vs. invest 1:13 - Security vs. financial independence 3:13 - The monthly math breakdown 3:58 - $600/mo saved vs. $1,000/mo earned 4:41 - Why most rentals fail (and what to do instead) 5:23 - The 4 profit centers of real estate 6:05 - 3 years of saving vs. a $100K check 6:48 - The non-refundable option fee explained 7:24 - The passive income first rule 8:09 - The HELOC strategy 9:05 - When to pay off your house 9:53 - How to reach $100K/year passive income 🔔 Subscribe for weekly real estate investing strategies: 👉 https://www.youtube.com/user/REInvestorTV?sub_confirmation=1 📱 Got questions? Save my number and text me anytime: +1 (385) 217-3477 👍 If this resonated, hit LIKE and let me know in the comments, pay off your house or invest? ⏱️ Find out exactly how fast you can retire with real estate! FREE retirement calculator: https://kriskrohn.pro/retirement 🗺️ Find out the 5 ways Kris is personally making money in real estate in today’s market. Grab the free guide and bonus video tutorial here: https://kriskrohn.pro/guide 📋 Get a FREE custom Game Plan from Kris’ Team https://home.kriskrohn.com/invest-now 🤝 Got Money, Retirement Savings, or Home Equity? Partner with Kris on Real Estate: https://kriskrohn.pro/real-estate 🏠 Find out how to turn your home equity into $800–$1,000 a month in passive income — with the HELOC payment covered for you: https://kriskrohn.pro/home-equity 📖 Get Kris’ REAL ESTATE BOOK on Back-Yard Investing http://sp.kriskrohn.com/claim-your-free-book 🎓 Join my community & access all my digital courses: https://www.skool.com/kriskrohn/about?ref=1f4f12e170624a98a43da3be8dd9fe3d CONNECT WITH KRIS: Instagram https://www.instagram.com/kriskrohn/ Facebook https://www.facebook.com/MentorwithKris X https://x.com/kriskrohn_ LinkedIn https://www.linkedin.com/in/mentorwithkris TikTok https://www.tiktok.com/@kriskrohn Kris Krohn is not in the business of providing personal, financial or investment advice and specifically disclaims any liability, loss or risk, which is incurred either directly or indirectly, using any of the information contained in this document. Also, Kris Krohn, this video, and any online tools, if any, do NOT provide ANY legal, accounting, securities, investment, tax or other professional services advice and are not intended to be a substitute for meeting with professional advisors. Homes and information about homes in this video (if any) are historical examples, where past performance does not predict future results. If legal advice or other expert assistance is required, the services of competent, licensed and certified professionals should be sought. In addition, Kris Krohn does not endorse ANY specific investments, investment strategies, advisors, or financial service firms. NO INVESTMENT, FINANCIAL, LEGAL OR TAX ADVICE The contents of this video are for informational and educational purposes only. They should not be considered investment, financial, legal or tax advice. Kris Krohn is not licensed in the insurance or securities industries and is not in the business of selling, soliciting or negotiating the sale of any insurance contract, security or other investment vehicle. DISCLOSURE OF FINANCIAL RELATIONSHIP Mr. Krohn has a financial interest in MPI Insurance Services, LLC (MPI), a licensed insurance brokerage agency incorporated. #realestateinvesting #payoffmortgage #passiveincome #daveramsey #financialfreedom #leaseoption #realestate2026 #wealthbuilding #kriskrohn

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The Dave Ramsey debate

Dave Ramsey's out there preaching pay off your house, and I get why that message lands for so many people because there's something about being debt-free and it's like, "Ah, I can finally breathe, right? I've un-mortgaged my life. " Meanwhile, I'm over here saying, "Hold up, but instead of paying off the house, what if investing the cash ends up being the smarter move? " So, who's right? Dave or me? Listen, Dave knows what he would do and I know what I would do, but today we're not talking about Dave or me, we're talking about you. That's right, you are the next contestant right now on the most stressful game show in personal finance. Pay off your house or invest? — One shot not a future be sure. Let's go.

Two doors: pay it off vs. invest

go. — Welcome back. Paid off or invest? You got a choice. Behind door number one, you take your lump of cash, you wipe out your mortgage balance, and behind door number two, you take that same cash, but you put it into an investment property. Now, by the end of this video, you're definitely going to have a clear understanding of the real math of both of these options. And what we're going to do is break it all down for you so that you can make a confident decision without guessing. Is it Dave and pay it off or is it Chris and invest? And we're going to do it in three steps today. And by the end, you're going to know exactly which door makes the most sense for you

Security vs. financial independence

and why. Now, we're going to be hitting a lot of numbers, so what I've actually done is I've created an infographic that goes along with this video. Just simply click the link below, grab your free copy, and enjoy. Step one, security versus independence. Let's start with the truth that most people don't say out loud. A paid-off home is a level of security. It lowers stress, it lowers fixed expenses, and for a lot of people, it feels like you can finally breathe. And if you've ever carried a mortgage payment month after month, the idea of wiping it out can feel like instant relief. I totally get it. But here's the one thing you've got to remember, not having a mortgage payment doesn't mean that you can stop working. You still have groceries, insurance, utilities, car payments, gas, kids, life, not to mention that you still have to pay property taxes on that house even if it's paid off. In other words, a paid-off house might remove one bill, but it doesn't replace your income. And if the goal is to get your time back, freedom, this step doesn't get you out of your job because you still have to work to pay for everything else. That's why security is not the same thing as financial independence. Independence is when your lifestyle is paid for whether you work or not. Independence is when the income shows up even if you don't. It's the difference between I reduced my expenses and I replaced my paycheck. So, when you're choosing between paying off a home and investing, the real question isn't what feels safest. That's an emotion. The real question is, which choice gets me closer to my life being paid for without me working? Because one option is about lowering pressure, and the other option, well, it's about building a machine that leads to pure freedom. And that's why two people can look at the same $100,000 and make two totally different choices. And you both might be right. If one person's top value is sleeping like a baby and having financial peace of mind, they're going to choose security. They're going to use that 100 grand, that inheritance, or wherever that money came in from. They're going to get that house paid off. But if another person's top value is buying back their time, they'll choose the path that builds income because they're not just choosing different doors, they're playing different games. All right, step two.

The monthly math breakdown

The monthly math that changes everything. Now, we got to do the part that most people skip because math is inconvenient. And if you put $100,000 into paying off your house, what are you really buying? Well, you bought the removal of a monthly payment. And depending on your mortgage, that can feel like instant relief. And there's also a dollar tag. But just to anchor this into reality, at today's interest rates, a $100,000 mortgage is roughly a $600 month payment on principal and interest. So, when someone says, "If I pay it off, I'm going to save $600 a month," that's not some made-up number. That's actually what a $100,000 loan costs right now. Door number two, you take that same $100,000 and you put it into an investment property that produces $1,000 a month of positive cash

$600/mo saved vs. $1,000/mo earned

flow. And here's where this gets interesting. That $1,000 doesn't just sit there. It can replace the $600, and it can cover your mortgage payment, and still leave money left over. This is now an opportunity cost game because that $1,000 pays for that $600 mortgage, and I got 400 bones left over. So, now you're not just saving $600 by eliminating a bill, you're creating income that can pay the bill for you. And that's a totally different game. Now, we've got to keep this honest. Who is getting the $1,000 a month in positive cash flow right now on a traditional rental? Well, almost nobody. In this market, after higher rates, higher insurance, higher taxes, and repairs, most normal rentals, they're lucky if they even just break even. And

Why most rentals fail (and what to do instead)

this is exactly why I pivoted to short-term strategies that create a bigger spread. One of the main ways that I do that is through what's called a lease option, where the structure is designed to increase monthly cash flow while reducing a lot of the other stuff that wrecks rental profits. Like constant maintenance calls, vacancy risks, calls at middle of the night. And the numbers that we're seeing there can be dramatically different than traditional rentals because you're playing a different game than rent it, and I'm going to hope that it cash flows. Now, beyond the monthly cash flow, real estate has other profit centers working for you at the exact same time. So, while you're deciding between saving $600 a month versus making $1,000 a month, the investment property is doing two other things in the background. Number one, the tenant

The 4 profit centers of real estate

is paying down the principal. And on your investment, that's like a 4 to 5% cash on cash return because when you sell the house, all that money they paid off on that principal, you get to keep. And when it comes time to sell, the real question becomes this. What's worth more? Two or three years of saving $600 a month, or a big check when the investment property sells? Now, nobody can guarantee appreciation, but over the last 65 years nationwide, US Census Bureau says that we're averaging 4. 65% year-over-year growth. And I've seen plenty of people walk away with 30, 50, or $100,000 when it came time to sell that property because time passes, the loan balances drop, the market moved upward, you're going to make money. Now

3 years of saving vs. a $100K check

compare that to the payoff your house savings game because if you're saving $600 a month for 3 years, well, that's $21,600. That's real money, but it's the not the same as getting 30, 50, or $100,000 check at the end of the sale on top of any of the cash flow that you also did make along the way. So, the payoff isn't just monthly. The payoff is that you can stack multiple profit centers at once like income, principal paydown, potential appreciation, and when you add those together, that's when investing starts to look less risky, and it starts looking more like a wealth system. By the way, I did not mention that one of the coolest benefits of a lease option is that the family that moves in will typically give you between a $10,000 and a $20,000 down payment. It's

The non-refundable option fee explained

non-refundable. It's upfront. It's in your bank. So, now you stack that on the other profit centers, and paying off your house starts looking like the wrong move when there's all of this money to safely make by buying the right kind of house. By the way, if you're not familiar with lease options, and you want to go deep on what they are and how they work, I'm doing so many of them right now. Click right here. Watch this video. Let me show you. Now, at the end of the day, your goal shouldn't be to make just money. It should be to replace your current income with passive income. All right. Now, we get to the step three, the passive income first rule. Here's the rule that keeps people from making this decision emotionally. We

The passive income first rule

don't rush to pay things off until our passive income exceeds our expenses because once your passive income covers your monthly lifestyle, you start getting the things that you actually want, and you start getting options. You get options to work less, to quit a job, to pivot, to be present, to stop living under that pressure of I have to show up or everything falls apart. A paid-off house, it does give you security, and security is valuable. But, financial independence, that's a lifestyle. That's a mindset. It's a total different level of optionality. Independence is basically when your income shows up whether you clock in or not. And if you want time back, your job to be optional, the fastest path is building income-producing assets first and then letting those assets eliminate

The HELOC strategy

expenses for you. I want to say that one more time in a different way. Before you pay a house off, go invest and have your money make money reliably. I think that it ends up being a lot less risky. Why? Because more money at the end of the day is more options. And then let that money pay off your debts. We're still going to pay things off. The question isn't if, it's when. And this is why I like the two doors framing so much. Door one removes a payment, and door two can create an income stream plus principal paydown, a $10,000 down payment, potential appreciation, and then if you really want that income stream can later be used to pay off your primary residence, or it can be used to go buy two or three or four more homes. In fact, just pause for a moment. If you have equity in your house right now that you're trying to pay off, you might want to do the opposite and get a free home equity line of credit and use it to buy a couple of properties like this. Why? Because the average American is sitting on $300,000 of equity. There's enough to pull out there for two properties. And 5

When to pay off your house

years later, those two properties might make you a couple hundred grand. Now, if you want, you can pay off the house, or you can go double down and get four more properties, or get to eight properties where you're now making $100,000 a year passively. Now, here's the filter so you can apply this to your life. If you're close to retirement, and if you're extremely risk-averse, or if your income is unstable, or if peace of mind is worth more than growth to you right now, paying off the house could absolutely be the right move for you. But, if you've got a little bit of a longer runway, like 5 or 10 years, and you still have a stable income, then you can invest responsibility with reserves and prioritize that passive income and what it's going to do is it's going to accelerate the path of freedom and retirement. In fact, I can show most people how to get to a $100,000 passive income in just five or 10 years using this exact strategy. So, if you're

How to reach $100K/year passive income

sitting on a pile of money, don't just ask, how do I make my life feel safer? more independent? Because a paid-off asset is security, but a residual income that covers your expenses and has leftover money, that leads to financial independence. And if you like today's video, definitely like and subscribe and don't forget, I took all of the notes, content and I put it into one really cool free diagram that's going to help you with your game of financial intelligence. One picture is not just worth a thousand words, it's like maybe worth $10,000. Click the link below, claim it for free.

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