Buy Cash then Refinance, or Finance Up Front?

[Ron Healy]

In general, are there any advantages of buying a rental property with cash then refinancing later?  I'm looking at buying in a market outside of Alaska and while I want to leverage my investments, I wonder if making the initial purchase with cash makes things easier and/or cheaper.  Or should I just finance up front?  I would appreciate any advice.  Thanks!

[Allen Chaney]

Cash makes for a faster closing and sometimes can get you a better deal. Refinancing can be difficult and sometimes at unfavorable rates. Make sure you can refi ahead of time if possible. Usually a conventional loan on the purchase is the only way to get a 30 year amort. Refis and commercial loans are usually 15-20 years. Also explore a HELOC. If you can find a lender to do it, they usually have pretty good rates. With a HELOC you'd buy with cash, then get a HELOC on it. You'd draw off the money as needed and could even use it to pay cash for other properties. It's probably going to depend more on what you can get than what would be better.