Comment by derangedHorse
3 days ago
An intelligent investor wouldn't buy it outright, they'd get a mortgage with a lower than average interest rate. The appreciation of the home will cover the interest rate over the long run and the interest rate is a small price to pay for keeping most of that $100,000 liquid for other investments.
A finance person will mortgage the house if the mortgage interest rate is less than the investment returns elsewhere. If the mortgage interest is higher, he'll buy it cash.