Hello everyone, welcome back to episode 32 of the WIIRE Podcast! This week we have a special request from one of our followers on Instagram. Melissa writes:
 

“Hello loving your podcast. I'm new to real estate and we are looking for strictly cash flow to pay for liabilities we have. My husband wants to buy our first investment property with cash, hold, and then later when rates come down, and hopefully, the place appreciates, refinance. I would love a podcast on buying all cash and whether you think that would be okay?”

The short answer, it depends. But what does it depend on?

Well, there are a few factors we would take into consideration before making this decision and in this episode were going to talk about strategies for buying cash, the perks, and the pitfalls of both ways. 

What it really comes down to is being able to predict when rates are going to come down. If we could do that, we would be crazy rich. But since we can’t we need to know how to lean into what you know and what you are comfortable with. If you know that you have no debt on a property and you want one cash-flowing rental then that could be a great option. However, if you are looking to scale we would advise against it because you want to keep your capital moving, as quickly as possible in most cases.

So many things can happen to any one given property so consider that. We like to have some diversification in our portfolios. Even if all of your properties are in the same market you can still have a diverse portfolio because you are not relying on one single tenant to pay for everything for you. If you are planning to buy a property then BRRR, or refinance within six months to a year, then we would consider that purchase. 

Melissa also mentioned refinancing when the rates come down, but consider this: why not purchase it via financing right now, then refinance again when those rates come down? 

“Just because you have a loan on it doesn’t mean you can’t refinance it.”

For us, we're in scale mode; so it's all about the next property. However, Melissa might not be. She might want one and done and that's okay. It’s a really personal decision and there is a lot to consider on both sides. 

Thank you SO much, Melissa, for submitting that question. If you have a question you’d like us to feature in an upcoming episode send us a DM on Instagram or reach out via email.

 Thanks for tuning in, we’ll catch you in the next episode!

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