Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 6 years ago on . Most recent reply

Account Closed
  • Valley View, TX
0
Votes |
9
Posts

Will paying cash for a deal punish us on Cash on Cash returns?

Account Closed
  • Valley View, TX
Posted

Is it harder to get a ten percent or more Cash on Cash return when doing cash deals?  Seems like the only way we can up our Cash on Cash is to calculate the purchase with a much lower down payment... but we want to sink our own cash into the deal.  I am struggling to see if it is a bad deal or if we need to accept lower Cash on Cash returns when we invest all-cash deals... Thanks!

Most Popular Reply

User Stats

13,372
Posts
19,407
Votes
Joe Villeneuve
#4 All Forums Contributor
  • Plymouth, MI
19,407
Votes |
13,372
Posts
Joe Villeneuve
#4 All Forums Contributor
  • Plymouth, MI
Replied

So, w hat you're really asking is this:

1 - Is it better to pay for the entire cost of the property by yourself, or let the tenant(s) pay for the vast majority of the cost for you?

2 - Is it better to turn a profit within your first couple of years, or can you wait for year 20 to see any profits?

3 - Is it better to have 10 properties, a;; cash flowing now, all seeing a profit before year 2 is over, or buy one property now, mot see a profit for a long, LONG time, and not be able to buy the next property for at least another 10-15 years?

Loading replies...