Cash purchase vs waiting 2 years vs creative options

[Gary Dezoysa]

Hi everyone,

I wanted to ask what my best option might be for my first investment house in Toledo. I am out of area.

- A cash purchase on a 65k house would take about 1 year for me to save for

- Conventional financing will take 2 years of positive tax returns which I don't have yet. I discussed my situation with an REI friendly loan officer

- Being out of area I don't have a local network of private lenders to tap into

I think my best option on years one and two is to wait and cash purchase one house each year. My savings rate of 6,500/month appears my biggest asset for now.

Or is there another option you guys might suggest for me?

Thank you!

[Dan Armich]

@Gary Dezoysa - I am not a financial professional, and I tend to be quite conservative in my deals. With that out of the way, I suggest saving up for a cash purchase. My main argument being that the markets in many areas are seeing quite a bit of appreciation recently, and waiting a year or two while you save up allows the market to do what the market will do. It goes up more; you get the opportunity to do lots of evaluations on potential deals without purchasing. The market goes down, you get to evaluate and purchase at lower prices than today. Why force it. Two years is nothing in comparison to overreaching on a deal. 
- Dan