Updated over 7 years ago on . Most recent reply
My $100k Question I’m struggling with
I have $100k to invest in some rental property and wanted some opinions.
I can buy a house free and clear in a c class neighborhood where I would need a property manager.
Or
Get a 180k loan and invest in a b class duplex and not pay a manager?
Obviously a lot more comes into play.
Thoughts?
Most Popular Reply
@Steven Ferraro The beauty of real estate investing is that it allows for leverage.
Most investors don't buy properties for cash unless they really cannot get financing.
When that is the case, it is usually for a short period of time with the aim of refinancing quickly once the property qualifies for financing.
In an era of cheap money available for investment, without looking at the details, my guess would be that you can get better returns if you contract a loan.
imo, whether the property is in a B or C area is secondary to this equation