buying with cash vs borrowing

[Calvin Lang]

I currently own (no mortgage) two homes and I am living in one and renting the other.  I am looking to purchase another investment home for income purposes and I do have the cash to purchase one property outright. I am not sure if I should finance a small part of it and save cash for future real estae investments or just pay cash.  Any insight or experience anyone can share would be most appreciated.  Thanks,   Calvin

[Joe Villeneuve]

By it with all cash, then refinance to get all of your cash back out, and reuse it on the next property, repeat, again and again until you can't refinance anymore.  Then take the cash from the last refinance, find a credit partner that can refinance, and "share the wealth"  You buy with cash, the CP refinances, and you repeat until the CP can't refia anymore.

Then you find another credit partner, and so on.

This way, you never ever spend the money, you're just using it...over and over.

The most important thing to remember is, after each refinance, the property must still cash flow.  If not, then you bought the wrong property...or are in the wrong market.  Go find a market/property where you can do this and still cash flow after refinancing.

Joe Villeneuve
REcapSystem
A2REIC