All cash changes the deal…

[Rhianna Cultrona]

We have an opportunity to buy a home in a C neighborhood but a good location. House is in great shape and the numbers work but it is a cheaper house and now we might not be able to get a loan that low. Now we are playing with options. Would you switch to all cash if it was going to take longer to recoup your investment? 

[Nathan Grabau]

The question you want to ask yourself is: if you had to sell, do you want to have to be selling to people who struggle to get financing too and have to pay all cash. In my opinion, the most valuable part of single family real estate is on the exit, you are selling to a wide pool ranging from cash buyers to first time buyers putting 3% down. You should expect that your appreciation is not going to keep up with the market because buyers who could buy your property if financing was available, can't now.