Buying first property with cash

[Adam Rego]

Good Afternoon everyone,

I was thinking of buying a investment property with cash and then using the home

equity for my next property. Any advice would be great : )

[Derrick W.]

I did just that and sometimes feel it was a mistake.  These are make up numbers but in theory..... You buy a 100,000$ house and can only cash out 70%. That's 70k for your next purchase. There is 30k there that you really can't get to.its locked up in the first purchase.   I some times wish I had taken the 100,000$ and used it as 20% down on 5 100k houses. 

I know this isn't totally realistic but hope it gets my point across.