A lot of "I's" and not enough "You's" in your proposition there.

This sounds risky.

If you have properties but are not willing to offer as security then that would be very telling about how confident you feel about success with this new property you want to purchase.Anything with mixed use and multiple things going on with a property is very risky as so many things can go wrong.

With a lease you do not have any of that.If you have millions of dollars cash and this is a 100k purchase then risk is lower.

You risk is simply higher.

Shane Little -I'd be VERY careful investing money with out of state "real estate investors" - there have been many scams and ponzi schemes in this area and it's highly risky!

It's a lot more risky, but it's also more immediate and provides me with a lot more motivation to stay the course.

Interest rates on investment properties are higher than interest rates on primary residences since the risk is greater to the lender.You can use the equity if you tap into the equity through a cash out refinance as a down payment with certain qualification guidelines being applied.

Once you have substantial money typically hundreds of thousands or more in cash you do not want to place in such risky investments.If you do it is a small part of your overall portfolio it minimize risk.

The flip would obviously offers a quicker return, but is much more risky.