Low downpayment VS high downpayment

[Ricardo Lemus]

Hi there! 

For today’s episode, I'm planning to purchase another rental property and have been researching various down payment strategies.

Traditionally, I've adhered to the 20% or higher down payment rule to secure better mortgage terms and avoid Private Mortgage Insurance (PMI). However, I've recently come across articles discussing the potential benefits of lower down payments in certain situations.

Given the current real estate market conditions, what are the critical factors to consider when deciding between a high or low down payment for an investment property? How might this decision impact the overall investment strategy and long-term profitability?

I'd appreciate your insights on balancing the trade-offs between initial capital outlay, monthly cash flow, and potential returns.

Thank you for your expertise,
Ricardo