Capital vs Leverage

[Kyle M Nedd]

so I talked to my brother on his first deal and the underwriter said he thinks he should lock in his rate at 6%. What a gut punch of how the rates have come. Now comes the question for me as a new investor. Should I just over leverage myself with a FHA and have a higher mortgage and pmi or just save more capital to put down a better percentage of 20% down payment for a better rate… at the same time am looking for a property that not just turn key, but to fix up and learn… as they you should but everything in investing, because you need reserves just in case issues appear… for anyone there what do think is the best strategy for a new investor in locking their first deal in a competitive and higher rate market