Quote from @Alexandra E Hartman:
Ya this has been exactly what I've been mulling on. With interests rates at insane levels (the market I'm looking at seems to be over 10% for investors), a loan would deeply decrease my cash flow. Is getting $50-100/month worth the hassle of the extra tenants and repairs? Is it smarter to buy a house all cash now, with the plan to take a loan out when the market inevitably cools/crashes and interest rates are lowered? Or maybe getting a loan and then having 3-4 properties vs. 1 is actually best for risk management. Paying that much interest makes my skin crawl ha...
I've always looked at a property netting $100 per month as not worth anyone's time. At that point you are banking on appreciation 10 years down the road. If I'm going to be liable for $250K for 10 years, it better net me more than $100 per month. The issue is leverage, if used responsibly, it helps expand growth. If used irresponsibly it can crush you. Lots of investors are leveraged to the max. If there happened to be an event in the market that upset the financial lenders, they are toast. All cash or very low LTV leverage, you will sleep better and succeed in the longer run.
