Invest all cash in a new property?

8 Replies

Thanks Aaron

I am in the dilemma of buying a property all cash with the advantage of buying it 30% below market price and have this capital gain in my pocket or diversify buying more than 1 property giving down payments but paying market price today.

I do all cash deals to get a leg up in a competitive market - usually sellers prefer cash buyers who can quickly close the deal.  Then I do refinance (usually within 1 year) after I place a long term tenant.  

Originally posted by @Eduardo Paz :

Thanks Aaron

I am in the dilemma of buying a property all cash with the advantage of buying it 30% below market price and have this capital gain in my pocket or diversify buying more than 1 property giving down payments but paying market price today.

Pay cash to buy below market value. Then fix the place up and do a cash out refinance or HELOC and pull your money back out. That's exactly what I do.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

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.

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

Start here