I am new to REI and am thinking about buying my #2 property using cash. The first one I bought for cash at a tax sale and the #2 property is a reo. My question is , is it stupid to pay cash for these properties and use my savings, I am not planning on buying any more until next year until I can save some more money. I think it would be nice to have the properties paid off but I keep reading to not use my own cash am I missing something here?
I think cash is rocking!!! if you can buy properties all cash, thats awesome, but if you subject to or lease options, the same cash that buys one house, could buy a few or more houses… Depends on the purpose behind why your buying… If your looking for cash flow generators, then free and clear is pretty cool… but you could get real creative and Buy the properties you own in a roth ira and the money into the roth is tax free at retirement… Id say look into that with a financial advisor… also, having actual loans on the properties arent bad if you can make the payments, its a good tax write off too… Hope i helped
Thanks, yes that helps and purpose is for cash flow, trying to replace my income and I will sure look into a roth ira. Thanks.
Leverage with OPM. Always keep your cash reserve.
There is a limit to how much you can deposit into your Roth IRA per year. But you can use your regular IRA to invest in a deal as long as it isnt a relative or yourself. Also, use someone else’s IRA to invest in your deals since you cant use your own. Do some research on that, it is complicated. But tax write offs are nice.