All Forum Posts by: Jerry Cinor

I wouldn’t mind leverage. but as long as I know I have the fund to pay all cash if things went sideways. Only way I see myself leveraging. But I’m getting a lot of great answers from you guys. And hear both sides.
.Originally posted by @Derrick E.:

I buy all my homes with cash and invest for cash flow.

These people leveraged to the max are setting themselves up to go under during the next market crash.

Equity is just FAKE wealth until the property is sold.

will look more into that.

Originally posted by @Patrick Hale:

@Jerry W. - It would be either a CASH OUT REFINANCE or HELOC loan. 

Originally posted by @Jerry Cinor:

How does refinancing a home that’s already paid for work? Thanks a lot! 

 posted by @Patrick Hale:

PROS - negotiation when buying a property. Cash offers can often get 10%+ under competitive bids. Once closed you could refinance a portion so that you still create a decent cash flow but can then leverage capital elsewhere

CONS - leverage - you could be leveraging your cash into another investment. 

 posted by @Patrick Hale:

PROS - negotiation when buying a property. Cash offers can often get 10%+ under competitive bids. Once closed you could refinance a portion so that you still create a decent cash flow but can then leverage capital elsewhere

CONS - leverage - you could be leveraging your cash into another investment. 

Originally posted by @Ihe O.:

Originally posted by @Jerry Cinor:

What are the pros and cons of buying a rental property cash? 

Just want to hear you guys opinion. And any other suggestion/awareness you guys might have for me.

Thank you!

Pro -  You have no mortgage obligation every month so there is no need to freak out every month  a tenant is late with the rent.

Pro - You have no mortgage obligation every month so there you don't feel pressured to rush to fill a vacancy with an unsuitable tenant.

Con - You have no mortgage obligation every month so there is less of a tax write off and you are more likely to pay more taxes on your rental income.

Well the pro is that you don't have to pay a mortgage payment every month. The cons, in my opinion, are that you don't make as much of a return on your money and you are the one holding all the liability.

Here's details on the topic-

https://www.biggerpockets.com/renewsblog/2015/04/1...

Hope that helps!

I will search for the blog. Just wanted to hear what you guys’ are reading. Originally posted by @Ernesto Hernandez:

Theres a blog post you should search out. 20 books suggested by BP. Honestly, all the BP books I've read are really good. 

I read the total money markeover book last week. Nice book. I am a big fan of Dave Ramsey. 

will check out the others.  itOriginally posted by @Aziz Raji

Welcome to bigger pockets!
Books:
“ what every real estate investor needs to know about cash flow “by Frank Gallenelli
“ Rich Dad’s CashFlow Quadrant “ by Robert Kiyosaki
“ The Total Money Makeover “ by Dave Ramsey

These are great books to read in my opinion.