Updated over 4 years ago on .
To brrrr or buy using financing?
Ok, I currently have 2 properties paid off in my portfolio, so I refi'd one property and bought another sfh in cash with that refi'd money. Now I decided I would refi the new property I bought in cash and the other property I already had paid off doing a portfolio cash out refi. Total cash in pocket now is $180k. I've been wanting to step up in property values to around $150-$200k to have better rents and better class of tenant.
So my question is this. Should I continue to buy a house 1 at a time in cash, then refi out and go again. Or, should I just use the $180k and put 20% down and finance all purchases?
The latter will get me around 5 properties taking into cash flow during the time and process. The former let's me buy cash but I am looking at houses that don't necessarily need a lot of work but they do meet the 1% rule still. On the refi's, my bank will finance up to 75% ltv, so my cash will dwindle down this way too.
My current plan is buying around 5 properties using 20% down and financing them. What would you do? Thanks.