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Home › Forums › Housing › Buy & hold rentals – what type of property would you be buying and where? › One observation: If possible,

May 3, 2010 at 10:29 AM #546617
EconProf
Participant

One observation:
If possible, buy for all cash and get several advantages:
1. Better price because you can close fast & sellers want assurance you can perform. Cash is king.
2. Avoids all the junk fees associated with the purchase (and the eventual sale), the discriminatory interest rate charged to investors, impounds, appraisals, etc. etc.
Also on a strict cash-on-cash basis, this compares well with your puny 1 – 3% you may be earning on a pile of liquidity you are waiting to invest. A $100k condo or a $200k house will get your cash earning 5 – 7% plus any appreciation (or depreciation!).