New member... needing investment advice.

[Marty Summers]

Hi everyone,  My wife and I have 83,000 to invest into real estate.  Is there any reason why I should not purchase our first rental with Cash and cashflow our first one at let's say 850.00 per month??

I need advice please.... 

Thanks,

Marty

[Andrew Johnson]

Marty Summers Yes, you could refinance but you usually pay a little more (cash-out refi) in a interest rate and some banks require a seasoning period. Taking that out of it, if you bought two properties with 50% down you'd also have two structures to depreciate. I guess my point is that there are costs and benefits to each. In your position you also have the luxury to insulate yourself by having cash you could hold for reserves and any pending cap-ex expenditures. From what I see here a lot of new investors want to plunge all of their money into a down payment. That's an extremely risky proposition.