Cash or Mortgage?

[Simon Cox]

Hey everyone, I had a quick question about the best way to finance my first buy-and-hold.

At this time, I'm looking to purchase a property in the 75k-100k range. If I have the ability to buy all cash and still be in a good position to look at more properties, should I go cash or get financed?

I'm trying to decide if I want more cash on hand or a bigger cash flow.

Not sure if this question is phrased correctly or clear enough but would love to hear your thoughts! 

Thanks!

[Larry Turowski]

@Simon Cox As long as your properties are truly cash flowing, you'll always do better by leveraging, i.e. by buying more units with financing rather than fewer with cash.

That doesn't mean that is what you should do.  It depends on your goals and comfort level.  I got into a couple of buy-and-holds originally not knowing I'd really want to do that.  I wanted to be able to get out easily at any time.  Owning them outright gave me that flexibility.  Once I knew I was comfortable with being a landlord for the long term I financed and bought more.