Is It Better to Buy Rentals with 25% Down or All Cash After Buying an Owner-Occupant?
Manage episode 424769190 series 3467138
So, are you stressing out over higher mortgage interest rates and properties not cash flowing as well as they used to, or in some markets, not having positive cash flow at all... even with 25% down?
What's a real estate investor seeking financial independence to do?
In this class, we will compare two strategies. In both strategies, you first buy an owner-occupant property with a 5% down payment to live in.
Then, in the first strategy, you save up for a 25% down payment and buy a rental property. You repeat this process, stopping only when you own 9 rental properties.
In the second strategy, you take extra time to save up until you have enough to buy the property for all cash... 100% down payment. While it takes longer to save up to buy a property for all cash, having a free and clear property, or two or three, with great cash flow makes saving up for subsequent rentals easier and faster. You repeat this process, stopping only when you own 9 free and clear rental properties.
We model this in over 300 US cities using each city's property values, rents, taxes, insurance, etc. And, we use today's interest rates.
Which strategy gets you to financial independence the fastest? Which gives you a higher net worth? Which is riskiest? Which should you utilize?
Find out in this special class.
Check out the video and interactive charts from this class here:
https://RealEstateFinancialPlanner.com/model/25-down-vs-all-cash-with-oo/
Or, see McKinney specific, detailed analysis of a variety of strategies here:
https://RealEstateFinancialPlanner.com/model/TX/McKinney/
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
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