Hey @Susan Butler! There are a few things to consider for your specific situation...
The type of financing you use for your real estate purchase depends on a number of different factors. What is your investment strategy? Exit strategy? Goals? Are you trying to invest conservatively or make a riskier investment for higher gains? Some of these questions you can get some help with by talking to a lender. But, just be sure to keep your personal investment goals in mind...because ultimately a lender does not get paid unless they, essentially, help you acquire a loan.
Honestly...personally, depending on exactly where my investors are in their investment journeys...I typically recommend exploring the financing route. There are a number of reasons why someone would recommend this. (Feel free to send me a message and we can connect so I can explain the ins & outs to you!) But, ultimately it basically boils down to retaining cash/liquidity in the event that you desire to make additional investments (or, as it seems your concerns may be hinting to, in case you need it for something else). The benefits to using available cash to fund multiples investments as opposed to paying all cash for one investment seem pretty self explanatory, but the largest benefits...especially in real estate...are likely the ability the spread risk across multiple investments and the ability to make multiple investments in a shorter period of time, allowing your cash flow, equity, and ultimately potentially your net worth to increase at a faster pace.
To answer your question about traditional financing directly, yes you can obtain a traditional mortgage and put a large cash down payment down, essentially financing 'part' of the purchase price. The reality is, (and I say this solely from personal experience...not from any point of real estate advice to tell you what you should do lol) most sellers don't care what type of financing you use, even if you change from cash to financing, as long as you successfully close on time. But, you are under a legally binding contract. It is not something to be taken lightly! As a matter of fact, I recently met a young lady who, shortly after meeting, called me for help with an investment she'd made with someone else after both she and the other person failed to satisfy their contractual agreements. But, unfortunately there was nothing I could do to help her because I had no connection with the original agents or parties in the transaction and the other party had already taken legal action. If you don't think you'll be able to satisfy your contractual agreement I highly recommend speaking with your realtor, and maybe even a real estate attorney, as soon as possible. (Shoot me a message if you're having trouble figuring out how to start the conversation with them. I'm happy to help however I can.)
Also, your concerns about interest rates are certainly valid in this market! My recommendation, if you decide to go the financing route, is to get with a lender that can offer you lower interest rates. Not all lenders can do that, but...for instance...I'm actually a District Manager with Build 2 Rent here in Florida and we have off-market investment properties (both occupied and vacant) that you can purchase with our in-house lenders and interest rates in the low 4's because of the incentives we currently have available. I'm happy to share the information with you! Just send me a message and I'll send you the link.
I am a Realtor here in Florida as well. I have been working in the real estate industry since 2010 and have specialized in working with investors (especially first time investors) here for a number of years. I do offer investor consultations! Feel free to connect with me if you'd like the link. I'd be happy to answer any questions that I can!
I hope this helps! Shoot me a message if I can help with anything else. Congratulations on starting your journey & Happy Investing!
