What's the best path

[Michael Sobczyk]

Theoretically speaking: If I had the cash to purchase 1 Buy and Hold property at lets say 40-50k in price. Should I take the cash and buy the property free and clear or should I take the cash a use it as a down payment with a portfolio lender and purchase 4 to 5 buy and hold properties. My thinking is to use the cash as a 20% down payment and purchase 5 turnkey properties in that 40-50k price range. Am I way off base with this?

[James Wise]

Originally posted by @Michael Sobczyk:

Theoretically speaking:

If I had the cash to purchase 1 Buy and Hold property at lets say 40-50k in price.

Should I take the cash and buy the property free and clear or should I take the cash a use it as a down payment with a portfolio lender and purchase 4 to 5 buy and hold properties.

My thinking is to use the cash as a 20% down payment and purchase 5 turnkey properties in that 40-50k price range.

Am I way off base with this?

 Spread the cash out & buy with a bank loan. Using OPM (Other Peoples Money) is the #1 reason why real estate investing makes sense. You use the banks money to buy a house then have the tenant pay the bank off. Best business in the world.