All Cash BRRRR vs Finance (1st purchase)

[Matt Ward]

Hi Everyone, long time reader-first time poster!

I'm approximately 6 months away from being ready for my first purchase. Here is some general info: I live in a very expensive market, I have a great mentor who's plan I will be following, but my questions come down to which is better for my situation - all cash BRRRR cash out, or finance multiple properties from the beginning.

More info: my target property profile is a 2b/1b apartment for ~$200k which rents for about $2k.  TOTAL operating costs w/o loan is $500/month.  Loan payment will be ~$800/month.  So either if I finance from beginning, or after a cash out, my costs will be $1300, net $700 = $8400 cash flow annually.

My dilemma is whether I should buy all cash and wait for the 6 month seasoning.  

The issue with all cash, in addition to the wait time, is that in order for a $200k property to appreciate enough for me to get all my cash out, it needs to go to $250k. This may take longer than 6 months. Alternatively, at the 6 month mark I could take as much out as possible and fund the difference of the next purchase with a LOC I have on my primary. The positive is that I am competitive for the purchase and may save closing costs by only doing a refi. Also, when I'm in the seasoning period I'm collecting more rental income.

The issue with financing is that I may not be competitive @ 20% down and/or may run into financing issues with either the property or as I accumulate more properties it being more difficult to get the financing on properties 4, 5, 6, etc.

Some other things: My wife and I each have a W2 job, household income is ~$200k per year.  Only debt is a small amount of student loans from a private lender that will be paid off in 2 years.

TIA for your feedback.