Is Leveraging Really That Risky?

I’d say one of the most famous debates that comes up on this website is the one about paying all cash for a property versus leveraging a property. And by famous I mean, it gets ugly. The heart of the debate seems to center around the difference in risk in buying a property using all cash or buying a property using leveraging. Those who leverage their properties boast that ...

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Leveraging vs. Paying Cash for Rental Properties: A Look at the Infamous Debate

Oh, the famous debate. Should you pay cash for your investment properties, specifically rental properties, or should you leverage them? If you are new and don’t know what leveraging means, it means using a loan or some other form of money (basically anyone’s money other than your own) to buy property. Buying a house using a mortgage is a perfect example of leveraging. If you haven’t caught ...

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Pay All Cash or Leverage a Property? An Amateur Analysis.

This article was originally posted at hipsterinvestments.com in October 2012. See the original post here. I was asked my opinion on whether someone should pay all cash for an investment property so they can borrow against it, or leverage it. I definitely don’t claim to be an expert, but based on my calculations and experience, I think leverage is the way to go every time. Two main reasons: 1. Your ...

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