Cash purchase for Single Family Rentals or?...

[Bob Keith]

So here's my theory. I have no rental property now. Going into this I am considering paying cash for a SFR every 12-18 mos. In my area (East of Dallas TX) inexpensive homes go for 200K. Is there a downside to buying one at a time and having them all paid off? I just want the residual income from the property. Not sure I am as concerned with having 10 houses all leveraged, VS 2 completely paid off. I like the 200K range as that changes who you are dealing with somewhat. I know every time I moved out of a rental, the landlord couldn't believe how good of shape it was in.

[Derrick E.]

Originally posted by @Thomas S.:

@Derrick E.

The only difference is you will be losing your own cash in equity instead of the banks money. No reason in either case to lose the investment. 

I do understand there are hyper conservative investors, I do not understand why they invest in real estate. I prefer to earn money off of someone else's risk, ergo leverage. 

No. The difference is you go from owning 25 homes and living large to struggling to make payments and lose all of your hard work.

I prefer to sleep well at night knowing I'm safe. 

SOME leverage is ok for me, but not much.