25% Down and 3 Points

[Tim Van Gerven]

Hello,

I'm in the process of completing a deal (SFR, buy and hold) and the other night my lender told me that my loan is going to fund but with a 25% down instead of the 20% and with buying 3 points to get a 5.75% rate. My cash flow is still good but my cash on cash IRO is a little lower than I'd like.

My question is should I go through with the loan or buy it outright and possibly refi at a later date if need be.  Buying outright the cash flow is great and I should still be on target to purchase one to two properties a year.

Thanks for your input!