Down payment from cash or equity

9 Replies

Hello all,

I recently bought my second investment property. Closes in a month. I’m faced with a dilemma if I should down payment with cash or use existing equity from other property. What would you suggest and why?

I believe it depends on your goals and how much equity you have built up. For me I would rather build in my properties for a potential portfolio loan or heloc down the road allowing me access to cash for BRRs and quick deals I can refiance later so I am trying to use cash as much as i can to build my portfolio. Also feel like it naturally won't let me get too far ahead of myself if I have to save for the downpayment. 

@Steve Gibbs yeah, if you have the time to go through a loan to get the equity out (45-60 days is common) then explore that option first.  You can always just go back to using your own cash if that doesn't work out.