What to do with $20K Cash - Posted by Dave Cruz

Posted by Max-Va on May 26, 2006 at 07:34:29:

Dave where I am 20K would just about cover closing costs and maybe a 5%down if lucky.
You donn’t say where you are at but if you can leverage 20K into 2 or more cash flowing properties and still have some reserves, this is what I would do.
Do the numbers because it is not properties it is all about the numbers.

What to do with $20K Cash - Posted by Dave Cruz

Posted by Dave Cruz on May 26, 2006 at 04:54:50:

I have 20K cash. I’m confuse on what to do. Should I buy a house cash or buy a couple houses using this as down payment.

Re: What to do with $20K Cash - Posted by John Corey

Posted by John Corey on May 26, 2006 at 08:23:33:


  1. Lets assume your local market is lower priced than most of the US. That seems to be what you are implying.

  2. Cash is more valuable than equity. If you buy for cash do so for a deep discount.

  3. Understand that it is hard to finance property when the loan amount is under $25K or $50K depending on the lenders in the area. Hence you could find that you can not get loans. This could also mean you can not refi and that it is hard to sell.

Questions for you…

Do you want cash flow or short term hits from flipping, rehabbing, etc?

Are you interested in being a landlord?

What is your credit like? Have you spoken with lenders to see what they will do in the local market? You might need to focus on local lenders or mortgage brokers who are active locally to find loan programs that are going to go low enough. Or you will need to focus on more expensive property with the loan is $25K or $50K plus possible cash as a down payment.

John Corey