Need advice for purchasing first property

[Michael Geary]

Hi!

Just did a cash out refinance and got about 290k. I was thinking about buying a couple properties using the 290 for down payments but someone said I should just buy one property cash. Thoughts??

[Alecia Loveless]

@Michael Geary This will depend on your goals and how debt averse you are and your ability to get mortgages.

Personally I would try to get 2-3 multi family properties with this if I could find deals that worked financially with this money divided this way.

This way my money had several units per property paying down my debts and building me equity plus generating cash flow for me.

So if the deal worked right I could buy 3 $300,000 properties with $60,000 down payments, maybe $8,000 in closing costs and have cash reserves of $86,000. And hopefully they'd be generating maybe $10,000 per building or more per year in cash flow after all mortgages, expenses, CapEx, vacancy, and maintenance.

If you paid all cash you’d likely have 1 $250,000 property paid off generating you $17,500 per year after all those expenses.