Cash or Finance

[Andrew Nida]

3 deals at once. Long story short, I am closing on three separate properties from three separate sellers. One is commercial (next to a commercial office space that I currently own), another will be my very first short term rental in Historic St. Andrews, Florida, and the third is a block from my primary residence, where lies my question. 

45 days ago I would not have drawn this up. My wife and I fostered two young boys and we have been blessed to continue to be in their lives for years now. The youngest still calls me dad. We also have 3 boys ourselves. There mother called us just over a month ago and informed us that they were being evicted and if they can’t find somewhere that she can afford, they will have to move back with family, away from GA. Of course, It would break my wife and I if this happened. In the meantime, there has been a home, empty, for over a year one block from my house. I have hinted around to the owner that I wanted to buy it for over a year and he has had no interest to sale. WELL, I get a phone call that he’s ready. 🤦🏻‍♂️. 

So, I can pick up this 3 bed, to bath house for $150 (great price). I have intended to pay cash because I know it may be likely that the mom could miss a payment here and there. For that reason, I wanted to pay cash to remove any emotional/financial burden so it bothers me less, If that makes sense. This decision is beyond the money for me. 

My problem is that the Florida home I just purchased will likely cost $35k-$50k more to remodel than I had expected. With all three homes hitting at one time, I’m basically out of personal cash on hand. I could still cover the gap, but I would have to cash flow it which could take 2-3 more Months. 

Should I not pay cash for the foster family home and maybe finance $50k so I have $50k available for the remodel?  Or should I just slow down on the remodel, remove some of the projects, and cash flow over more time?