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.

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