Should I pay cash or should I finance?
I would like to buy a rental property for $120 K. I have two options to pay it cash or finance it and buy two similar properties.
Which would be a preferred way in this situation to pay cash or finance and why?
Example 1. Cash
- Price: $120 K
- Tax: $200
- HOA: $300
- Insurance: $50 per month
- Rent: $1200
- Profit: $650
Example 2. Finance 2 properties
- Price: $120 K
- Tax: $200
- HOA: $300
- Insurance: $50 per month
- Rent: $1200
- Down payment: $60 K
- Principal and Interest: $310
- Profit: $340 per property = $680