Purchasing cash then cash out refi? Vs traditional financing?

[Prep Wilson]

hello everyone! Hoping someone can help me out with this question, do you think it’s better and easier to purchase investment property using cash then turning around and do a cash out refi? Or is it better to hold most of your cash and just use a portion as a down payment and finance the rest? Thanks in advance!!

[Justin Fox]

If you know your market, can estimate repairs well and have the extra cash, then all you have to wait on when dealing with a cash-buy is a Survey, Title work and then closing.  When you deal with a lender then the Appraisal comes into play (longer wait time), loan officers and underwriting asking you for the same documentation over and over, possible required inspections and etc.  It's just easier and quicker to buy cash and then cash out 6 months after the purchase.