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Updated almost 10 years ago,
Any All Cash investors out there? Buy and Hold
I am shocked to see how few members prefer investing with cash only, no leverage.
My current strategy is to buy a house or 2 each year for the next 7 years all cash. This should position my family to cover all of our expenses. At that time we could do whatever we want for work and I have considered using leverage at that point to build a big real estate business with the cashflow safety net in place. My wife and I both work and we are conservative with money (obviously). All cash I am getting about 14-15% cash on cash return after all expenses. I understand that I could get about 25% COC if I used leverage but with our full-time jobs I would rather sleep well, build slower, and have less doors to manage.
Am I shooting myself in the foot for passing up the extra 10% return for piece of mind and less to manage?