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Updated almost 5 years ago,

User Stats

90
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40
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Jonathan Yeh
40
Votes |
90
Posts

Pay in cash or leverage in recession?

Jonathan Yeh
Posted

Hey guys, I've recently purchase a preconstruction. My plan was to purchase in full with cash and HELOC the money out when I'm ready to purchase my next rental.

Here's the problem, with recent situation, I'm leaning toward getting mortgage with the low rate and the risk of house market falling.


The reason why I'm not investing the cash somewhere else is because this is the funding I got from selling my inherited house, and I made a promise to myself that the funding will only be for real estate investing. Therefore not putting it in stock market at all, and leaving it to get 2% from the bank is not any better than purchasing the house in full to receive higher cash flow. 

Let me know what you think/suggest. Thanks in advance! Lastly, be safe!

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