70% of savings on the first rental property

[Ricardo Montes de Oca]

Hi all,

I'been listening to and reading all the content in Bigger Money from the start of the year. I went pro about a month ago an I have used the analyzing tools for a lot of deals.

I bought my first home on December and now I am about to buy a investment property to start building my rental portfolio.

The number are fair (CoC of 6.72% and $192 of Cash flow -- I couldn't find anything better in the South Florida Area). The condo is in Margate, FL.

I am about to make an offer, but there some problem: Since the condo doesn't have a 10% of reserve, the lender is asking for a 25% down. That, and the closing costs, would mean a 75% of my savings.

I had been reluctant to surpass the 50% of my savings, thinking in the next property that I may buy later on, but since it is so hard to find a deal like that I been thinking about it.

That is why I am recurring to this space for opinions about it.

This is my first post by the way. Glad to be part of the community.