Cash for 2 properties or finance for more?

[Emery Green]

Hello all, I was wondering your thoughts on purchasing 1-2 rental properties Cash vs buying several with financing? Seems like having debt free income would be smart and an easy way to save $ to purchase more properties , but maybe I'm not thinking about this in the most savvy manner. Specifically, I'm looking for single family homes or small multi units in and or around the Baltimore area. What are your thoughts for this green investor? Thanks in advance for your response! Best, Emery

[Dave Crussel]

Hi Emery,

Leverage is a powerful multiplier for building your portfolio.
Others have recommended the following approach if cash buying is an option for you,

1. Buy with cash.
2. Rent
3. Refinance to withdraw a portion of your capital.
4. Repeat.

Cheers
Dave

I am looking for small multifamilies in southwest suburbs of Minneapolis.