Help or advice on rental experience

[Matt Harris]

This question is mainly for veteran landlords or those with rental experience. Would you rather leverage properties or own outright with paying your own cash? Currently I do both but am trying to find my own niche here's my opinions I like owning outright because no stressful bills like bank hassles or if something goes wrong finances aren't as tight because you own the property and higher cashflow based on expenses but the other side is I'm in a lower income bracket so you get higher vacancies complaints and damages. But if I can finance and go into higher income areas is it worth it you have a loan to pay so always have to keep finances perfect and be prepared for sudden expenses with the added bills but the tenants are usually better with lower cashflow but your leveraging others money is it worth the risk as nothing is guaranteed. What you prefer or any advice in this matter? Have others started in lower income areas due to lower barrier of entry but usually more problems and then moved into higher income areas with leveraging and able to keep up on all the bills. This is strictly rental markets cashflow vs quality. Thanks

[Sarnen Steinbarth]

I think it is best (especially with the current extremely low interest rates) to try to leverage, but have a nice cash reserve for maintenance, capital expenditures and unforeseen costs (since you are not paying cash you should have more available to you as a cash reserve).

It is no fun to have to leverage to the point that if 1 tenant misses a rent payment you can't make your mortgage obligations.

So my advice in a nutshell:  mortgage + healthy cash reserve.