Advice Buy with Cash or Finance.. Please Help!

[Faraz Ahmed]

Hello All,

Quick background.. I started real estate in 2005, bought multiple properties (high-interest loans, arms, etc.). I had no idea what I was doing.. (was 21). Went through the recession and ended up short-selling my properties.. 

Faster forward to 2010 I obtained my real estate license and started investing again, but this time buying properties outright.. 

My passive income is 5k month and I have no debt..  I also have a full-time job in IT management 

I live in a townhouse and have been saving up to buy a property for my growing family.. I have 3 kids (under 4) so as you can imagine living in a townhouse has been difficult.

I have $500k in liquid and have always had the mindset of buying my new primary residents using cash as I've been burned by loans in the past.. 

Recently, I started thinking this through a little more, and would like to put 20% down on a house and take the remainder and acquire more properties when the market drops.. 

My goal is to have 12-15k net of passive income..

What are your thoughts? What would you do? Appreciate everyone's help!

[Mark Ainley]

@Faraz Ahmed  Good to hear from you on here! Definitely get a loan on your house and use the balance for investment.  If you plan on buying and staying in a home for a while I would even encourage putting less down on your personal residence especially if you can find a good deal where you might close and have some additional equity if you bought right.  What ever you put down on your house will stop earning you cash flow and interest elsewhere.