Pros and Cons: Refinance vs Mortgage

[Spencer Hatfield]

I want to buy a multi-family property and I can buy 100% cash and then refinance once any repairs are done. Should I refi or is there an advantage to just get a mortgage up front? 

[Alina Trigub]

@Spencer Hatfield Think in terms of the return on your investment as well as how fast are you able to scale up. 

For instance, you have $100k to invest, you buy a single property with $100k and let's say it makes you $10k/year. $10/$100K = 10% a year and you have no other money to buy more properties.  Let's change the case a bit. Let's say you put in 20% down = $20k, got $80K note and received the same $10k/year on this property. You just bumped your return 5 times: $10k/$20k = 50% a year and you still $80K to invest! 

Hope this helps!