Cash Purchase or Conventional Loan?

[Ronald Mejia]

I am looking at a SFR that needs renovation (asking 450k, reno about 90k-110k). I have enough cash on hand to purchase and cover renovations but im not sure if I should do that or conventional loan? With the rates at what they are my thought process is to do the deal in all cash then if rates drop do a cash out refinance. My ultimate goal is CASH FLOW (comp rentals $4200/month).

Doing the deal cash provides the most cash flow but I would like to BRRRR and recycle that money into another property down the line and grow my portfolio.

Thoughts? Concerns? Advice?

Thanks BP Fam!

[Charles Carillo]

@Ronald Mejia

I like the idea of doing it all cash and then refinancing it. I would use current interest rates and terms for your refinancing calculations in case rates do not decrease. If you are cash-flowing at those numbers, great!