Quick question on down payments. 20% or 25% down????

[Megan Elmendorf]

Hey guys quick question. We are in the process of looking at homes with our realtor and he firmly suggests we put 25% down instead of the 20%. We thought we should hold on to our money if possible, (even if its 5%) to try and make more purchases going forward. Any ideas why 25% could be better or why he is suggesting this? 

[Lesley Resnick]

Cash preservation is the key to success in this business.  Leverage as much as you can .  The rates are historically low, mortgage interest is deductible which owner the effective rate. 

Use the extra cash to fund the next deal.