What's my best option?

[Michelle L Ocana]

Hi everyone

I am new to this forum and looking at purchasing my first rental property. It's a duplex. The units have upgraded electrical and heat, updated kitchens and bath but will need some extra work to really make them shine. I have great credit but I am in a position to buy it outright with cash. Should I? Would it make sense to purchase (and try to get a deal) with cash then borrow for upgrades or should I finance everything and keep my cash?

[Thomas S.]

Your best approach may be to go in with a cash offer to be able to close quicker. It may be enough leverage for you to get a lower price. Before you do that get a bank to prequalify you so you can refinance asap after purchase. You may be able to include the upgrade costs in the mortgage loan.

The more of your own cash you can keep out of the refinancing the higher your ROI. You can then take your cash and repeat.