What's the best analogy to use when thinking of how a leveraged buyout works? An investor buys a house to rent out to tenants, using a down payment and mortgage, then uses the rental income to repay the mortgage, and then sells the house in the future. A homeowner buys a house to live in with a down payment and mortgage, and then sells the house in the future once the mortgage is repaid. A person buys a car using cash and a car loan, drives it for several years, repays the debt, and then sells the car. A person buys a car using cash and car loan, leaves it in his garage for 30 years, and then sells it as an antique car