Which interest rate/closing cost option do I chose?

[Eric Telese]

Hello and happy Monday everyone!

Currently under contract on a duplex and need to chose a rate option that has been sent by our lender. As rates and closing costs have an inverse relationship, we are faced with a few different options. Below I have listed the different rates, with the varying closing costs and out-of-pocket cash amounts needed:

Rate	Closing Costs	Cash Needed	CashFlow	ROI
4.750%	$ 9,812	$ 53,812	$ 483	10.78%
5.000%	$ 8,642	$ 52,642	$ 466	10.61%
5.250%	$ 7,956	$ 51,956	$ 448	10.34%
5.625%	$ 6,156	$ 50,156	$ 420	10.05%
5.875%	$ 5,132	$ 49,132	$ 402	9.81%
6.125%	$ 3,962	$ 47,962	$ 383	9.58%
6.375%	$ 3,670	$ 47,670	$ 364	9.16%

Do we take a higher interest rate for a little less return, in order to save some cash to put towards our next deal? Do we take a lower rate with purchase points due at closing (I have incorporated points into the closing cost amounts) for a higher return? Or am I thinking way too deeply into this and need to just pick a happy median? The payback periods from the most expensive option range from 4-5.5 years. This is our first property, so we may or may not hold it long-term.

Thanks for any input!