Financing advice

[Justin W.]

I have an offer on a small rental property. It has 2 houses on it. Smaller house is 2/1 and larger is 4/2. Purchase price is $140K and current rents are $500 and $1000. My question is about financing. I have a decent amount of cash available for down payment, Up to $60-70K. I'm trying to decide if it would be better to put more down on this or less and try to buy another property. For example, should I put $60k down to lower payment or put $28K down and put the rest on another property. Looking for input on this. My goal is to gain enough rentals for this to be my primary cash flow. This is in a college town where rentals have a great history of staying occupied. I'm a new member to the site but loving it so far.

[Travis R.]

I would say it is what you are comfortable with and what your goals are. Putting down a larger down payment will provide you with a larger cash flow but putting a lower down payment and looking for other properties can be advantageous too. Since you said you plan on gaining enough rentals for it to be your primary cash flow what I personally would do is put the 20% downpayment and look for another great deal.

Good luck!

Travis