Updated over 4 years ago on . Most recent reply
Buy cash or mortgage?
I am just starting into investing. I have 175k cash to purchase property/ties. As I am just starting, looking for thoughts and recommendations. Should I be focusing on 1 property around 175k pay cash, 2 cheaper properties to pay in cash, or putting my cash down and finance the rest? Thanks!
Most Popular Reply
Joe Villeneuve
#5 All Forums Contributor
Pro Member
#5 All Forums Contributor
- Plymouth, MI
Option 3. When you buy rentals, your cost is only what comes out of your pocket...that should be the DP ONLY. When you pay cash you are paying 100% DP. IF you buy a $100k property and put up 20%, you only paid $20k for that property. The tenant pays the rest from the rent...don't help them.
Now take that same $100k you could have paid on one property, and buy 5.