Afford Anything · Tuesday, July 7, 2026
Joe Sal advises that the allocation of funds for a rental property purchase, specifically the split between cash and leverage, depends heavily on the property's characteristics. He suggests that if a property is newer, in good condition, and in a desirable location, one might be willing to take on more debt, but for properties with lower quality (Class B minus or C plus), a more cash-heavy approach is recommended.
“So if I were to buy a property that was relatively new in age and good condition in a great location in a desirable geography... then I'd be willing to take greater debt in order to do that.”
“By contrast, if I were buying a class B minus or C plus property. I would want that to be more cash heavy.”
“So in terms of what that allocation is, totally depends on what kind of property you're buying.”