How Much Money Down On a Investment Property?

[Annie Johnson]

Hi Everyone,

I realize this is a pretty broad question but I have been debating the pros and cons on how much to put down initially on a single family home. My first real estate property I put down the minimum since I moved in and lived in it for 6 months before getting renters in. I am now thinking about doing that again. 

Do you suggest putting down the minimum on a property and have the rent cover the mortgage + any additional principle payments? Or do you suggest putting more money down up front so that the home is more paid off? My issue with this is I would have to wait longer to purchase another home.

Thanks for your help!

Annie

[Dominick Galinis]

Hey Annie!

so, it’s time to employ BPs favorite answer: it depends on your goals.


financially speaking, it's better to get as much leverage as possible to make the numbers work. (Like a FHA loan if possible)

But, if you get more peace of mind for having the house more paid off, it might be worth it to get a second home loan or whatever and put down 20%. 

It’s just up to what’s more important to you, and how fast you want to move. (Insert something in here about any action being better than no action to complete it all lol)