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Updated over 3 years ago,
Cash vs financing DTI
I am a newbie and trying to learn all the ins, outs and lingo! I hear a lot about it being better to spread $100,000 over apx 5 investment properties vs putting it all into one. My question, and this may sound silly, but it seems like qualifying for 5 properties would be difficult when you are starting out because you do not yet have the income to show from the properties. But if you pruchased a property cash then you show $0 debt on it with all cash flow to use as income for the next investment. What am I missing here? How do you qualify to purchase 4-5 properties without the cash flow coming in from them yet?