Cash vs. finance on buy and hold

[John D.]

Hello all,

I am looking to purchase my first buy and hold property in the Orlando area and was hoping to get some opinions/advice. I am searching in the 130K to 150K range and I have the ability to pay cash. Does it make more sense to pay cash and then mortgage the property or is financing it up front a better option? From what I have researched, I will have more leverage on pricing with an all cash offer, but is the difference worth the additional fees, closing costs, etc. if I have to turn around and mortgage the property? Any input would be appreciated. Thank you.

John 

[Rashad Luckett]

One consideration is how competitive your market is. My market is hot right now especially for investments. Cash is king here and you might have a hard time competing for the good deals if you are using financing. If you plan on using financing anyway, take advantage of the Delayed Financing exception and you can pay cash up front and get your purchase price + closing costs back relatively quickly as long as the deal is good enough.