Free and clear vs using cash leverage

[Stephen Moore]

For everyone with multiple properties in their portfolio,whats everyones opinion on buying properties free and clear vs using leverage( cash) and buying more?

[Nathan Emmert]

Originally posted by Brian Adamson:

In my opinion, cash is king and i try to hold onto it as much as possible, so if i can put as little down as i can, that's the route im going to take.

Good luck

I'm with Brian... cash feeds your family, "equity" is imaginary wealth.

It also just makes sense. Look at the place I'm closing on next week...

With 25% down my payment will be $380 a month. With NOI of $650, my cash flow will be $270 a month.

Now, if I paid 100%, my cash flow would be $650 a month...

Of course, if I had enough to pay 100%, in theory I could buy 3 more of the same property... 4 x $270/property = $1,080.

Would you rather get the extra $430 a month (and equity growth in 4 properties) with a greater depreciation deduction... or have safety?