All Forum Posts by: Patrick Roane

Depends on your approach - cash flow or appreciation. It's definitely nice to have a paid off rental. Or your can buy multiple properties with small mortgages. Two houses appreciating long term is likely a better ROI than the cash flow from the one property would be. But you are also doubling the number of tenants, chance of expenses, etc.

Think of it this way. If you can get a 30-year loan on it and still make positive income, as well as appreciation along the way, it will leave you with more for reserves and more for other investments. If you haven't read Rich Dad, Poor Dad, read it asap. There is good leverage and leverage.

I grew up a cash investor and was scared of leverage, but it limited my ability to buy more properties. Having the cash means you can balance a higher amount down to make sure you earn the cash flow you want monthly, but also leave some around for more.

If you pay cash, you'll own it free and clear, which means instant cash flow and no mortgage to worry about. However, leveraging your money with a 30-year mortgage could give you the chance to buy more properties, increasing your overall returns and diversifying your investments. It really comes down to your comfort level with debt and your long-term strategy. If you're aiming for growth and can secure a low-interest mortgage, financing might be the better play. If you prefer less risk and immediate income, then paying cash could be the way to go.

 Can you clarify a bit more on this - is this a owner-occupied or rental property?

Hi Patrick, as rates have come down a bit the past week the opportunity for a low cost refinance is here and now!

There are plenty of lenders who can help you out on something like this. As others have mentioned, it being an investment property versus owner occupied is going to determine what product you qualify for .

As for your question what defines owner occupied.

Do you live in the property?

 The loan types available are going to be a different set of options based on if its a purely rental property or if you are occupying the property

All lenders have fees, those that don't just roll those fees into the rate ie offer higher interest rates. I would contact a mortgage broker in your local area, a credit union, and maybe a mortgage bank. Get quotes from all three and go with the one who offers the best combo of rates and service. 

Cheers!