Pay Cash or Finance?

[Ryan Davis]

I left my W2 job for more lucrative 1099 consulting work. I currently have eight rental properties (4 of which I purchased last year) and plan to buy between 2-4 per year. The challenge now is that I no longer qualify for conventional lending (3.5% rate) or other non-owner occupied competitive rates (4-5%). Asset based lenders seem to charge a couple of points and offer a 6-7% rate. I will qualify for more competitive rates once my 1099 income is proven on tax returns after two years as a consultant. In the the meantime, is it more cost-effective to pay cash OR finance with an asset-based lender at 6%+ rate and a couple of points (twice - once this year and again in two years) for closing on a brand new $310K home in NC? Again, I plan to refi after two years if it make sense. Any and all advice is welcome. Looking for lenders with best rates and lowest closing costs too. Thank you.