All Cash STR vs Financing

[Steven Andrews]

I 'm trying to determine the best path to take on investing in another short-term rental property and would appreciate some input.

I'm 12-18 months away from having enough to purchase an inexpensive ($100K) unit all cash. The idea of only covering taxes, HOA, prop management and upkeep expenses and otherwise having a unit that is netting $1000 a month give or take is enticing.

At the same time, after running the numbers, it seems like purchasing two $100K units @ 20% down with financing the rest may net more - combined as much as $1600 a month.

The 2 units might bring in more/month even with mortgages but then there's all the interest over time on top of that and it seems like that would make it less profitable long-term than the one all-cash unit.

What do you think?

Thanks,

Steven