Rental Property Investor · Pittsburgh, PA · Member since 2015 · 712 posts · 173 votes
so my question here is should i use my cash anytime that is available? i have on stand by a $75,000 line of credit or get a mortgage? I usually use my cash to be honest being that i try and close on properties fast when i get good deals. Then i think i can use the property to get line of credit on it. Any advice on the topic would be helpful. Thanks Josh
Yes to all of that. Use all three. It's all a matter of order and timing. Keep in mind a couple of very important criteria that you must follow when using them:
1 - When using your own cash you must get it back ASAP. This is where the other two can come in.
2 - The order of appearance, and timing of use, should always have your exit strategy in mind with the goal of the exit from one property leading to the entrance of the next,...and so on.
Note, that the "entrance and exit" I mentioned, is referring to your cash...not you. You're just along for the ride. It's your cash that enters and exits each deal. That's how you add the ever important "speed" factor to your REI