20% down for Cash Flow ?

[Tien Nguyen]

Hello,

My wife and I willbe buy our first single family home soon our plan is to use real estates as a means of eventually retiring early. My wife wants to put down 20% for our primary residence house which would cost us 30,000 in order to have a lower monthly mortgage and avoid PMI.

I think our money is better spent if we just put the minimum 5% down and save our money for future investment. What do you guys think is better.

On one hand if we put the 20% down we would not have PMI and our monthly mortgage would be 100 cheaper (745) and theoretically could cash flow better when we put the house up for rent 1 year from now.

On the other hand if we put down 5% we would have to pay PMI and our monthly mortgage would be 100 more (845) but it would enable us to save our money and purchase another house quicker.

What do you guys think ?