You can learn much more about how I have created over $8,000 a month in passive income with my rentals from my best-selling book Build a Rental Property Empire. It is available as a paperback, audiobook, and eBook here.
I am a strong believer in using financing to invest in real estate or even for your persona house. A lot of people say cash is safer, but I do not believe that to be the case. When you have all your cash tied up in a house it is not easy to get it out. You either have to sell the house or refinance it. Both options can take well over a month and if you are sick or lost your job, refinancing will be almost impossible.
The better option is to save money in an emergency fund, and have that available, while using loans to buy your house or investments. You do not have to finance 100 percent of the deal, and it will be tough to do that with an investment property anyway, but some financing is not that risky. In fact, you usually make more money flipping, and buying rentals with loans than you do with cash. You can buy more houses, which is safer due to diversification. You also get more tax advantages, equity pay down, appreciation, and more cash flow buying more houses with a loan, than you do buying less with cash. On top of that if you get a great deal on the home using financing will save you tens of thousands of dollars.
