Evaluate my mortgage

[Saad Handoo]

Hi BPers-

I'm looking to make my first investment property purchase in the next few weeks. I reached out to Bank of America and they quoted me on a 4.375% loan with 25% down. This is a 30 yr fixed rate mortgage for a non owner-occupied duplex. I'm also being assessed .146% in points during the transaction.

I'm eyeing a duplex that is listed for 125K right now in MLS. All in all it's going to be about 37.5K in down payment expense with closing costs included. I have the money for this down payment but I'm afraid that I'll be out of cash if I do two more of these price range properties - in the next few months.

My goal is to rapidly acquire buy and hold properties that I manage passively from an out of state location with a property management company. 

Despite getting the best rates with 25% down and using large conventional banks, is this really the best financing approach I should be taking?