If you can buy an investment property without getting a loan, you will be in better shape than someone who needs to get a mortgage to purchase investment property. Every penny received from your tenant rent payments (after any repairs and maintenance expenses are paid) is profit since you won’t have a monthly mortgage payment.
On the other hand, many successful property investors have purchased property using a mortgage, and are able to profit through their rental fees. It may take longer for you to earn a profit if you have a mortgage payment, but it’s not impossible.
Not having a mortgage is of course the best way to go. I've actually seen many cases of this recently in the Los Angeles area.
Most of us, unfortunately, do not have that kind of cash and are left with getting the conventional loan. I actually think it's rare to find properties that can be purchased and would put you instantly in the "black."
When you factor in the mortgage, property tax, insurance, utility costs, repair/maintenance costs and the cash reserve for deposits, it often will leave you in the "red."
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