BiggerPockets

The fact that you are paying cash has absolutely nothing to do with the true cash flow. The money you paid for the property is still worth something and there is an opportunity cost to using it to buy a property.

So, whether you are paying cash or not, I would still do the cash flow analysis as if you borrowed 100% of the purchase price (and initial rehab).

On the other hand, if you decide that your money is truly worthless, I'll be happy to borrow as much as you have at 1% interest. You'll come out much better loaning it to me at 1% than loaning it to yourself for free.

Mike

Richard, do you plan on buying rentals in your local area? Jim

Usually when I pay cash I will hold the property for a month or when ever I feel like refinancing. To me if the cash flow is a good % return then why refinance if you don't have to. Personally it doesn't make sense to refinance when you get 8% return. Anyway when I do refinance I take some out maybe $2,500 over what I have invested in the property. This seems to be working out ok. I just put $10k down on the principal of one of my loans.

I'm not sure were the $100 a door comes from. I always looked at it as ROI. My strategy might be different than most.

Hope this helps and makes sense.

Ken