6th house, first time with mortgage

[Derrick E.]

Hello Everyone,

My wife and I just bought our 6th house. This is going to be one we plan to live in for 3-5 years while doing some cosmetic updates before selling in 3-5 years. We bought the property through an off market sale. It's a small rural town but is growing quick and things do not sit on the market in this area very long. New businesses coming to the area including a newly built $30 million Intermodal Gateway. We are obviously hoping for some appreciation with the influx of potential jobs from the Intermodal. 

We purchased for $65k and ARV is around $100k right now. It needs around $10k worth of updates. House is in great shape, just hasn't been updated since the 1990s.

So the crazy thing is, my wife and I bought 5 rentals (with cash) before we purchased this house for ourselves. Now that we have that out of the way we are now going to look for some more investment properties to potentially buy through a bank while using all rental money to pay it off quicker. 

I love this community and I'm not sure if I would have ever bought the first house had it not been for this site. Just wanted to say thank you to everyone who contributes to this site. Whether you are just a reader or someone who comments regularly, thank you. 

[Frank Adams]

I'll take the opposite approach. With cash you have great negotiating power, lower closing costs, higher income and the ability to withstand extreme market fluctuations. I've lived through two of them and prospered greatly in the first-oil market collapse in the '80s, and survived handily during the second-investment banker's scam of the 2000s.

The first time I paid cash I noticed the first benefit at closing when I looked at the HUD-1. I wasn't paying a loan application fee, credit report fee, loan origination fee or points. Also the document fee was about 1/3 of the usual because the only document was a warranty deed.