Author Topic: Which idea is better? Option 1 or Option 2 or Option 3  (Read 345 times)

storx

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Which idea is better? Option 1 or Option 2 or Option 3
« on: December 14, 2018, 04:56:10 AM »
Hello All,

I am trying to make sure i undestand every angle of the situation i am questioning before i make decisions. I recently sold off most of my rental portfolio due to poor/negative cashflow on most due to purchasing prior to the crash of 2006-2009 crash. When each of my upside down properties broke even this past year allowing me to sell and walk away, i made the decision to due to news of a mini-crash coming in the near future. I moved into the one that had the best re-growth 3+ years ago with the intentions of selling and being able to exempt from the capital gains, which worked out in my favor this year the way i planned it out.

Anyways, I was curious which makes more financial sense?

Option 1:
Sense im renting now, I have been looking around at properties to possibly purchase as my new PR and a few i have looked at i have enough in savings to just flat out purchase with cash.
Then take whatever leftover savings i have + W2 income savings and find another rental in the future with a 20%+ downpayment that fully meets the numbers i have read about and learned about to not make the same mistake again
Also some of the better deals ive come across are cash only prices...

Option 2:
Some of the properties ive looked at are OK, but not great numbers as a rental based on current purchase prices, but the better OK deals are cash only, so was thinking of purchasing another rental outright with cash + fix and rent out, then look into financing another property closer to a forever home with a mortgage.

Option 3:
Continue to rent, place my savings in a high yield savings account and wait out another 1-2 years with the news of a mini-crash about to happen?