Thoughts on cash purchase?

[Jungae Park]

I prefer 20% down with 30 year mortgage 

Because it allows me to conserve my cash for future purchase (leverages) and gives me tax benefits since mortgage interest will be deductible. Also I get discounts if I can lock low interest rates against to inflation over 30 years. 

I'm complete newbie and considering to buy my very first rental unit. It's listed as cash only. 

My question is....

Would you go with full cash purchase?

If your answer is "depends on deals" then what is going to be your trigger in terms of ROI ?

[Nathan Murith]

@Jungae Park welcome to biggerpockets and congratulations on doing the work.

We've done plenty of cash only deals just to secure the deal. either to get a better price or because it was a cash only deal. what we did is purchase cash, close, and then immediately thereafter cash-out finance the property to get 75% of our money back. a.k.a. delayed financing.

when that is done they do they cash-out based on purchaser price. if you wait 6 months and do a cash-out, they would do it on the appraised value (good if you think the value is going up and you do not need the cash on hand).

Your cash is locked in a bit longer but delayed financing is great. 

please do not hesitate to reach out connect and DM me if you want to chat more about this