All Cash vs Leveraging re: Future Market Drop for 1st Investment

[Tim Lounibos]

Hey BP Community: 

I'm about to purchase my first rental property (will start offering mid-April when all my financing, cash reserve, and 2nd reserve source--i.e. heloc is in place). Finalizing my plan of action and leaning towards all-cash purchase and then cash-out refinancing after seasoning period (amount of repairs/rehab will depend on property--spent the past month studying up on BRRRR, REI, etc). A concern that's nagging at me is that I'll be buying when the market is probably near its peak and might drop during the seasoning period before refinancing. SO which course seems most prudent during these times: ALL-CASH OFFER with the accompanying purchasing benefits and intention for refinancing off a higher ARV vs. LEVERAGING the purchase with traditional lender from the beginning and avoiding a major hit within that six-month window? Any and all thoughts are much appreciated, THANK YOU!

[Chris Davidson]

@Tim Lounibos how long are you planning on holding? If you are holding long-term and it cashflows you might not be able to pull as much as you planned on out during the refi, but if it is a good investment it is a good investment. I personally don't see a drop coming like what happened during the 08 mess. With the rate the government is printing money, it has to go somewhere and the FED has pretty much said they will keep rates low until the economy is back on its feet. Also once they do start raising them it won't be overnight it will be bumped up slowly each quarter. I would just focus on getting into what fits your plan and just work it.