$100,000 to invest into buy and hold. Cash or mortgage

[Richard Kay]

I’m just starting on my real estate investing journey. My goal is to buy a nd hold for cash flow. Appreciation would be nice but cash flow is the primary goal. I have 100,000 to invest. Should I buy 1 all cash or spread it between several with mortgages? Would like to know the pros and cons to each strategy. 

[Thomas S.]

Risk tolerances aside your greatest ROI will be achieved by financing. Minimum down on as many properties as you can swing will maximise your returns.

If you can achieve positive cash flow with 100% financing that is you max ROI possible.

Investors generally value cash at a minimum or 10% return. With mortgage rates are at or near 5% every dollar of dead equity will cost you 5% in lost income. In theory if a property can not produce positive cash flow with a hypothetical 100% financing it will never have true positive cash flow, you will need to buy your cash flow up front with a large down payment.