So I invest in buy and hold multi-family real estate in the Rochester NY area. My question is does it make sense to take on a higher interest rate if it allows you to negotiate to a lower down payment and less closing costs. Here's an actual property I'm looking at with rounded numbers to make it easier.

TRADITIONAL.                              HIGHER INTEREST

Price              50,000.                    Price.             50,000

25% down.   12,500.                    20% down.   10,000

Closing cost.  3,000.                    Closing cost.  1,000

Total invest.   15,500.                   Total invest.    11,000

Income (3 units) 1,800.               Income (3 units) 1,800

Payments for.                             Payments for 

30 yr at 5% :    109 a month.     30 yr at 12%:  124 

Other expenses: 891.                Other expenses: 891

Total expenses: 1,000.              Total expenses: 1,015

ROI after a year: 62%. ROI after a year: 86%

Bank makes: 4,875 after.          Bank makes 5,800 over 

Life of loan.                               Life of loan.

To me it seems like if I can use the interest rate to get to a lower down payment/ closing cost I can substantially increase my return on investment, shorten the time needed to save for a property, and even make the bank more money at the same time.

What are your thoughts? Am I missing something?