If so, then it makes sense to get loans from the start.Cash gives you the benefit to win against others, as @JD Martin said, and then finance it later.

@Chris Johansen I believe the part you're missing is you are not "simply loaning him money" under the new iteration of your partnership arrangement.

Keep in mind that a rule of thumb is simply a rule of thumb. 

I personally think that a win for someone close to us, especially our children should be considered a win for ourselves.What’s your thoughts?

Most simply, let's assume you do a cash out refi for $336K and the interest rate is 7.00%.

However, it seems my local area (San Jose / Bay Area) might not be the best as I know most of the win is in the buy.

I equated it to a property per year simply because in the Denver area it's very difficult to find cash-flowing deals that make the investment worth it, so I figured I'd be looking at several properties to reach my financial goal. 

Either way, you win the auction, you have access to deed on the property.  

Um....I thought this was simply my profile and not an actual post. 

Let's win together.