New to investing in Rental Properties Baltimore City

[Candace Ferrell]

Looking for some advice or guidance. I currently own a property that I rent rooms With a cash flow of $1200 after expenses and capital expenditures each month. I want to buy a rental property in Baltimore City using the refinance money from the first property.  The current house I have, I own completely and has been appraised for $180,000. So my question is: After I refinance, do I buy another property with all cash or mortgage the new rental property?  Any other advice you can provide to a first timer would be much appreciated.

[Jon K.]

That depends on your personal goals and how fast you want to scale. We're in an era of historically low interest rates so if you were ever going to lock in a fixed rate mortgage now is the time. If you were inclined you could take the same amount of money and utilize leverage to get into several new rentals instead of just one. It's all risk vs reward. Again, depends on your goals, risk tolerance etc. There's no right or wrong answer here.