I need to buy another vehicle. I can buy the car and have no payments. Or do payments and possibly buy another investment property. Im on the fence, but thinking of doing payments and buying another property. Thoughts and views Thanks in advance.
Buy a property with enough cash flow to cover the car payments. Win-win situation!
If you want both, do the house first, not the car, your reserves will be better and/or your ratios will be better. On a car loan you can include the income the month you receive the rent check, they ask what your income is currently rather than proving past incomes as with mortgages.
Had to turn down many who went out a bought or leased a car and then tried to buy a home.
Do the house first. :)
Lease a new car and buy another property. Might as well own an appreciating asset (income property) and let somebody else worry about the depreciating liability (car).
I was in this situation about 6 mos ago. I was going to pay cash for a used vehicle - the dealership wouldn't give me any discount for paying cash, but offered me financing at 2.99%. I kept my cash and was able to purchase a nice rental property that very easily covers the car note. Still thinking I should have leased a new car instead of buying a used one :)
Buy the property then have your real estate company lease the car. It's then a business expense. The property cash flow covers the payment and the lease payment comes off your taxes. Win, win.
Thanks for the advice. The property would have to be rehabbed. It might be in line next or 2nd after the one I have is done first.
Thanks good advice.
Why not buy an inexpensive car with cash and use the rest for your property?
I realize this is an old post but I am trying to make this decision as we speak. Buy a cheap car with cash, or buy something through a deal, finance it, and use the rest of the cash to buy a property. So what did you end up doing?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing