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Updated about 3 years ago on . Most recent reply

Anna L.'s profile image
Anna L.'s profile image
Anna L.
  • from Twin cities, Minnesota
  • Member since Oct 16, 2021
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Anna L.'s profile image
Anna L.'s profile image
Anna L.
  • from Twin cities, Minnesota
  • Member since Oct 16, 2021
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Anna L.
  • Twin cities, MN
4
Votes |
24
Posts
Starting Out

Cash purchase vs mortgage loan

Anna L.
  • Twin cities, MN
Posted

I am a newbie here. no investment property yet. I found one condo in Memphis $45,000 with 2B/2B and it looks like the price is reasonable and house looks okay.

I am thinking to purchase it with cash. But when I got the report using BP rental property, it show 11.67% CocROI with cash  purchase and 30.29% with 30year 4.5 % interest rate. I am a little confused about this number. Is this mean getting loan is better investment strategy than cash purchase? Did I miss something or doing wrong ? Can anyone help on this, please? 

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James Wachob's profile image
James Wachob's profile image
James Wachob
  • Real Estate Broker
  • from Memphis, TN
  • Member since Aug 25, 2015
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James Wachob's profile image
James Wachob's profile image
James Wachob
  • Real Estate Broker
  • from Memphis, TN
  • Member since Aug 25, 2015
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James Wachob
  • Real Estate Broker
  • Memphis, TN
844
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1,423
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James Wachob
  • Real Estate Broker
  • Memphis, TN
Replied

@Anna L. one issue may be finding a lender. Most lenders have a minimum loan amount. I'm happy to help if you have any questions. 

  • James Wachob
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