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Updated 4 months ago, 09/02/2024
COC returns, leveraged versus buying all cash
So a good COC return is a lot easier to obtain when using leverage. When purchasing all cash on the same deal it's a lot more difficult to get a similar COC return, the numbers aren't even close. If purchasing all cash do we just accept a smaller COC return?
How differently are you analyzing deals when going all cash? I liked the idea of cash because purchasing is a lot easier (don't have to deal with banks), a lot less risk, more cash flow per property. And even though I would have a lot of cash tied up, I would always have the option to cash out refi. Of course it's a give and take between the two.. higher risk higher return potential. I just think I'd rather have 10 paid off properties vs 50 leveraged.