Some people choose to take out loans to buy their rental properties and others choose to pay cash. Today, we’re going to explore why you might want to consider buying in cash and how to do it.
I’ve invited someone on the show who owns 20 rental properties free and clear. No mortgage, no debt, and he doesn’t owe a dime to anyone.
Rich Carey is my guest today. He’s married, has two children, and currently serves in the military. He has a passion for real estate investing and teaching others how to pursue financial independence. His story of investing success has been featured in Bigger Pockets, MarketWatch and Business Insider.
Lately, I’ve been sharing our family’s interest in buying our first rental property. I’ve written articles, done at least a dozen podcast interviews on the subject and I’ve even looked at some houses with my wife Nicole.
I’ve learned 1% rule, the 50% rule and how to analyze a deal. It’s been fun!
During this whole time, I’ve been asking for people’s feedback, experience, and advice because I’m a complete newbie with real estate investing.
One person who reached out to me recently was my friend Deniz. He shared his difficulty with real estate investing over the past 13 years. He’s had tenant issues, rent competition and overall, it’s been difficult as he’s moved out of DC and into the suburbs as a new father.
Our conversation made me want to get more perspectives, pros and cons of real estate investing. We’re considering making a $100,000+ investment. I want to make sure our family is making a smart move.
With that said, here are 13 additional pros and cons from former and current real estate investors:
After paying off our mortgage in 2017, we have a lot more cash available to us as a family. We’ve used that extra dough to save up for our first rental property and we’re pumped to make it a reality this fall!
A big question that we’ve been struggling with is whether we should buy in cash or take out another mortgage. After much debate, we’ve decided it makes the most sense for us to go all cash.
I’m very interested in getting into buy-and-hold rental real estate. The additional income and the ability to grow a business that my family can be a part of just gets me all jacked up.
To continue to fan the flames of my real estate dreams, I’ve invited Chad Carson on the show today. Chad is a full-time real estate investor, world traveler, father of two and a dedicated husband.
For the last 15 years, Chad has built a real estate portfolio that has allowed his family to comfortably live without the need for full-time W-2 employment. He uses his extra time to spend quality time with his wife and kids and create lifelong memories together both locally and globally.
Now that Nicole and I are mortgage free, we’re moving onto our next big financial challenge: Buy-and-Hold Rental Real Estate.
Over the past year, I’ve been doing my best to educate myself in real estate by reading books and blogs and listening to podcasts on my daily commute. One of the podcasts I’ve been enjoying a lot is called Afford Anything hosted by Paula Pant.
Paula is a real estate expert. She’s built an incredibly comfortable life for herself and her husband with 7 buy-and-hold rental units. They spend an average of about 1 hour per week managing the properties and they make an impressive income.
Since Nicole and I are newbies with the rental real estate game, I asked Paula to join me on the show today to discuss her path from 0 to 7 units and how real estate has allowed her to truly enjoy a life of pursuing her passions.
This year, I’ve read more books than I ever have in my whole life. My desire to learn, grow and make myself a better person has propelled me to crack open (or listen*) to a new book at least once a month this year.
So, I’ve read my fair share of books. Pat myself on the back, right?