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Updated almost 10 years ago on . Most recent reply
More money down makes the deal.. Thoughts?
Hi BP,
So a pretty simple question.. Has anyone out there put more money down on a potential buy and hold deal in order to make the deal cash flow properly? For example, let's say I'm looking at a duplex that cash flows just 100 a month when I put 20% down, but 200 when I put 30% down. Obviously it seems like a good idea, I'm just wondering if anyone has made the decision to do it before. Would this strategy help someone make more deals?
Now I know that putting less money down helps the investor to leverage their money into more properties, but let's make a hypothetical in where that's not a factor.
Looking forward to your opinions!
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Short answer no...because it doesn't put you ahead...it actually puts your more behind.
I can show you why, but I would need some exact numbers...not just 30% and 30%, and not just $100 more/less per month based on the down payment.