Minimum mortgage amounts

[Keith A.]

If the strategy we plan on using is to buy cash and then use some leverage later, do we need to be looking at properties greater than a lenders minimum to finance?

For example, buying 60k properties cash and trying to do cash out refi's later would not meet lender minimums.

Is it better to buy a little higher to be able to do this?

[Bill Gulley]

If you can carry it off, I'd suggest 80-85K properties with potential of ARVs at 100 or more. That should put you in decent neighborhoods and properties which translates generally to better tenants, I assume you are holding to rent. While there are advantages of having two properties with the same money, you will pay, sometimes dearly, for the security of two rent checks. IMO stay at that level or above depending on your market as financing will at least be available on a conventional basis. Good luck