Is It Better to Buy Rentals with 25% Down or All Cash After Buying an Owner-Occupant?

Compare buying rental properties with 25% down payments or for all cash after buying an owner-occupant property first.

Show Notes

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 Lincoln specific, detailed analysis of a variety of strategies here:

https://RealEstateFinancialPlanner.com/model/NE/Lincoln/

Looking to buy or sell property in Lincoln, NE? Call Jake Grenemeier of Clover Real Estate Services with Next Home Integrity at [phone]. Or, check out his website at www.Clover.RealEstate or email him at [e-mail]. Jake specializes in helping real estate investors in and around Lincoln.

What is Lincoln Real Estate Investing & Real Estate Financial Planning™ Podcast?

Learn all about investing in real estate in Lincoln, Nebraska with a combination of real estate financial planning and modeling with numbers specific to Lincoln plus syndicated, more generalized recordings of live and pre-recorded real estate investing classes (not all specific to Lincoln).