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Updated over 4 years ago on . Most recent reply

User Stats

138
Posts
55
Votes
Brooks Conkle
  • Flipper/Rehabber
  • Mobile, AL
55
Votes |
138
Posts

Pay Cash for 1 Property or use financing for 4 Properties?

Brooks Conkle
  • Flipper/Rehabber
  • Mobile, AL
Posted

So if I've got $80k cash, should I....

A.
find a discounted property (in my market) to repair, get rented, refinanced, and repeat (BRRRR it's cold!)

or 

B.
Find 4 turnkey rentals (open to any U.S. market) for up to $100k each (assuming I'd have to say byebye to the cash for the down payments).

Would love to hear thoughts on this.


Thanks!

Most Popular Reply

User Stats

1,093
Posts
753
Votes
Mark H. Porter
  • Investor
  • SC NC, VA
753
Votes |
1,093
Posts
Mark H. Porter
  • Investor
  • SC NC, VA
Replied

Ask this exact question in google and you’ll find very detailed scenarios of using leverage and using cash.  The wealth difference of using leverage is huge.  Why not borrow at 3.5% and make 9-13% in the money?

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