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Updated over 6 years ago on . Most recent reply
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Down on Investment Property
What is a good guideline % wise on a down payment? If purchasing an investment property would you put more money in to get cash flow positive? Does that even make sense?
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Paying down a property does not increase the cash flow generated by the property. What you are actually doing is buying cash flow with your own cash. Paying more money than it actually generates is not investing. Ideally you want to keep your DP to a minimum to maximise the cash flow generated by the property. Buying cash flow generates a over all financial loss due to the lost opportunity value of your cash.
When a property can not produce it's own positive cash flow with a hypothetical 100% financing the property itself is a poor investment.