Cash vs Finance (BRRRR)?

[Jenni Villane]

Newbie here. We have some cash to invest and looking at getting started in real estate. Curious if it's better to pay cash for some of the first few properties to get an easier start (no dealing w/ lenders) and a cash flowing? ...or start out with BRRRR on day one? I know we will have more cash invested at the start, but figure we could still refinance those cash purchase properties after getting our feet wet on the real estate investing process. Thoughts?

[Taylor L.]

You might need to do your initial acquisition with cash or hard money from a private lender. Then typically for a BRRRR you refinance with a longer term loan from a bank.

Don't be afraid to deal with lenders. If you pay all cash your cash on cash return will be dismal.