Need Purchasing Advice

[Patrick Young]

Hi All,

I recently lost my home in a fire and was able to sell and profit about $90k from everything with insurance money. I have about 200k in cash and and trying to figure out the best move right now with it. I want to purchase a loft on Marietta St in Atlanta for $261k. Should I be putting $150k down or just 20%? What other considerations should I have. This was a freak event and I want to make the most with the money I have.

[Amit Sharan]

Hi Patrick,

Sorry to hear about the fire. But looks like you came out ok. The first lesson that we all can learn from your experience is the need for sufficient insurance protection on our investements.

As to your question, my suggestion would be to use your cash to acquire multiple properties. If you are in a position to get credit, leverage created through mortgage debt is an excellent driver for building up wealth. Put the minimal down, and find properties where the income from rents would cover mortgage and other expenses (and hopefully provide additional profit each month). Make sure you keep some cash in reserve for each property that you acquire. All the best!