Buying investment properties with cash.
 

I'm looking at an investment property that I could buy for 220k. It has NOI of 30k which comes out %13 cash on cash. Place is in real good condition, good location and a solid rental history.

5% of my money is gold
15% is in other investment properties
5% in stocks

The rest is sitting in a money market fund earning me fuck all right now.


Looking to put some of money money to work right now since it's getting me dick and was considering buying cash.


Prices are down 50% what they were a few years ago and I'm sure they could keep going down, but people need a place to live...


Anyone else buying up investment properties with cash?


good / bad idea?

keep your gold, you can invest the rest

Sorry, posted in a wrong thread...

If you qualify for a mortgage that is one of the cheapest costs of capital there is. The opportunity cost of investing your capital rather than paying 4.5% for it is high if you have the ability to buy higher cash flow and benefit from the spread.

if you qualify for a mortgage it would be better go that route.

the real way to get rich is to use your cash to finance multiple cash flow positive properties. rather than buying them outright, finance them and get as many as you can.

I say go for it, but beware of the double dip. Things are bad but they could get worse too.

I like real estate at these prices, plan to retire with several good rentals helping.

Take a look at some emerging foreign markets. Specially in Asia, they could be in play for decades. See eem etf.

Probably safe if you can buy positive cash flow, or good ROI if cash, at 65% LTV — you will survive any "double dip" that is foreseeable. Make sure that it is units so a vacancy will not kill you. Stay away from single family ...

Yes I've bought 3 properties in the last 3 months for cash. One was a foreclosure, a pre-approved short sale and a short sale.

Everything bad people say about a short sale is true, nothing but a pain in the ass and takes months and months!

Being Canadian I wasn't able to get a mortgage on the investment properties, they will only give a mortgage for a vacation home.

Where are you buying property?