Rental Property Investor · Elk Grove, CA · Member since 2016 · 306 posts · 76 votes
Hi, Everyone,
Looking for some outside help. We are flying to Cleveland for Veteran Day weekend to look at acquiring two more SFH's. We are not sure if we should finance both or purchase one with cash and the other with financing? We are looking to spend between $65,000 to $80,000. We need help with the pros and cons doing either option.
A little background on us. We have one SFH rental in Sacramento, CA and the other in Parma, OH. Both are cash flowing.
Your returns are typically higher if you use leverage and secure a loan on the property. If you have a mortgage on your own home and the other 2 rentals this will be loans 4 and 5 so you can still get Fannie Mae underwritten loans with excellent rates and terms. That allows you to save some of your capital for the next one!