Newbie House Hacker Loan Dilemma

[James Colton Lawson]

I have saved up enough money to buy a house in the area I live. I have decided I would like to house hack a townhouse in the area. I have the criteria I'd like and have started applying for loans. My question is do you recommend putting the smallest amount down such as 3.5 or 5% to have the most leverage or put more down to decrease leverage and have smaller monthly payments. I have enough money to put more down, but feel it would be more beneficial to hold and invest in another investment or business. Im open to any thoughts on this idea. 

[Brent Paul]

Tough to say without seeing all the numbers.  But generally if you put 20% down or more you will have more cash flow.

Put your numbers into the calculator first with 3.5% or 5% down.  See if that works for you.  Now input 20% down.  The biggest downside with townhomes is those association fees and more are not allowing rentals.  Be sure to read the bylaws for the townhome association.   I'm going to guess your cash flow will be pretty low unless the rent is high and association dues are very low.  I could never make the numbers work for anything in my area.