Buying an STR in Nashville - loan advice - 20 or 25% down?

[Chris Burke]

Hello all. New here. I'm buying an STR in Nashville and am looking for loan advice from those with more experience than I.

Option 1- 20% down, higher interest rate, save $19k in cash which I'll have on hand for the next project.

Option 2- 25% down, lower interest rate, save $300/mo and maybe benefit psychologically from that little extra cushion each month. It would take ~5.5 years to break even and earn back my $19k.

$55k of the down payment is coming from a 1031, and I have enough in reserve to go for option 2 if that's what I choose. Obviously there's much more back story which I'm happy to share if it's relevant.

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