Cash Purchase and HELOC

[Rollie Swanson]

I am getting ready to invest in my first property. I am looking for a place in the $100-130k range. I have the money to buy it cash but don't know if I should. I understand that I could use as little of my own money as possible and potentially get several properties under my belt. But, could it also be beneficial to pay for it in cash and then use a HELOC to fund additional purchases? Wouldn't that mean that I own the home, can pocket all of the $1000-$1200 rent, and once the HELOC is paid off I still own the property free and clear?

I’m sure that there may be something that I’m missing, but any advise would be appreciated. Thanks.