Down Payment of First Rental

[Thomas Helm]

In the Podcast with Erin Helle, she mentioned having $65k to put down on her first rental. She then said I thought you had to put 20% down and that know what she does now she would’ve bought 3 or 4 properties with the $65k.

What did she mean by this? I thought on the first mortgage they wanted 20% down and also, if you don't put 20% down then you have to deal with PMI.

I appreciate any advice. I’ve got $20k saved and looking to make a move this year and grab my first rental.

[Thomas Helm]

@Michelle Cronin wow! 25%....i always figured 20% was on the table. did not know they would require more sometimes. I'm looking at some off market things to increase my down payment through potential flips or value add properties that i convert into rentals but still have room on the refi to add extra capital to a slightly nicer rental property with more doors. 

Thanks for responding!