For a turnkey real estate investor, there are some large benefits to using cash for purchases rather than financing.
However, the amount of interest you can pay on a loan is astounding.
You also don’t have any mortgage payments to worry about.
However, with cash, you have the ability to take up to 75% of the value of your property out in cash.
No mortgage payment.
But if you don’t owe the bank, you won’t notice that much of a pain, just the lack of cash flow for a month.
Requirements for a cash purchase?
You Get First Pick At Turnkey Properties Many turnkey providers will offer up their properties to cash buyers before finance buyers.
Cash buyers don’t require an appraisal like finance buyers do.
Plus, don’t forget, you can do a cash-out refinance on your investment property (after you see some appreciation) and pay off the HELOC.