Cash vs low interest mortgage

[Fadel Shamm]

As a new-bie I want to ask the people with expertise, when buying a rental property would you use cash if you have it, or would take a mortgage and split you cash to buy multiple properties?

Thanks

[Jeff Rabinowitz]

What is your plan? Is it to hold a couple properties? If so, and you have the cash, paying cash can be much less risky than financing the properties. If your plan is to add more properties than you have cash for it may be wise to conserve some of your cash now. Interest rates are low by historical measures. If you can lock in a low rate for a long term you may be thankful when rates rise. You can earn considerably more when you leverage properties but leverage can also wipe you out if you use too much and property values fall. What is the right course? Like almost everything in real estate, the answer is: it depends.