Down Payment Size for Long Term Rentals

[Troy Hanson]

Hi, I'm looking for advice on purchasing a long term rental.  Real estate continues to be high where I am located and when I calculate the mortgage payment with 20% - 25% down, it only breaks even with the rent I could collect.  My question is, would a down payment at 40% or more be realistic for this type of acquisition?  I assumed I could cashflow for 20% or more, so I want to see if I need to adjust my expectations based on the experience of others.  Thanks.  

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