All Forum Posts by: Isiah Ferguson
Isiah Ferguson has started 66 posts and replied 315 times.
Post: what should I do ??? any advice
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Originally posted by @Jennifer Slaughter:
@Isiah Ferguson, out of curiosity, if you buy a multi family property any reason you would want to buy cash as opposed to leveraging debt?
Thanks for the feedback. Ultimately, I want my portfolio leverage. As long as the numbers are right and I'm able to pull my initial cash back out asap. It's a good deal.
Post: what should I do ??? any advice
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Originally posted by @Ryan Evans:
There was just a great thread about this topic that made a good point that stuck with me...
If you own a property free and clear, you are effectively making 4% or whatever the current mortgage rate is. Simply because you aren't paying that interest on your cash/equity.
Beats a savings account for sure. But if you compare it to other properties that can net you 5%+ AND build equity then it's going to be a better use for your money. That's from a purely objective standpoint.
The comfort factor and higher cash flow on your current property is worth something, but leverage will ultimately build more long-term wealth.
I think you're making the right call!
Thank you for the feedback. I mention a few things. You think I'm making the right call specifically doing ?
Post: what should I do ??? any advice
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
I will stick to my gut feeling. Refi my duplex at 70% and at this point I should have roughly 225k capital. I will purchase another multi family property for cash. Move out the duplex and put a tenant in the unit I'm in now. For my new property I will live in 1 side and rent the others. Soon as I can I will refi the new property, take my cash back and purchase a new property so on and so fourth. Once I max out 10 loans then ill refi my 10th rental property and take my cash back to purchase my primary. in this senses my portfolio would be leveraged and my primary will be free and clear with access to a HELOC from my primary. @Derek Wallace @Victor N.
Post: what should I do ??? any advice
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
@Nathan Gesner I think I would have the upper hand with cash purchases each time instead of putting 20% down.
Post: what should I do ??? any advice
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
@Thomas S. free and clear is never really real cash flow. That's why I want my rentals leveraged and primary free.
Post: what should I do ??? any advice
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
@Kristina Heimstaedt I understand. I want to use cash and refi to leverage my business. Have my SFH for my family and I free and clear with a HELOC in place.
Post: what should I do ??? any advice
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
@Dave Foster I believe you can never go wrong with your intuition. I think I will stick with that. I will leverage my business portfolio and keep my primary at the end free and clear at the end of building my portfolio. My duplex is part of my business.
Post: what should I do ??? any advice
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
@Erin K. Sounds like a pretty good plan. I will definitely think this through.
Post: what should I do ??? any advice
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
yes indeed.
Post: what should I do ??? any advice
- Investor
- Charlotte, NC
- Posts 320
- Votes 157
@Jody Schnurrenberger Awesome, thank you of the feedback. Opinions are just opinions lol....
Free and clear is always safer. I was thinking buying cash initially and keep refinancing until I reach my max of 10 properties through loans. At the last refi I can cash put of course and use the cash to buy my primary residence and keep my home free and clear. Also if I buy right throughout the process. I would love to have a primary free and clear at 250k-300k. sounds like a plan to me. I just need to figure out how to buy properly.