Buying 2nd investment property..

[Ryan R.]

My question is about the 20% down for obtaining my second investment property. I have the cash, but I don't believe it to be wise to put down 20% if I am purchasing a property that already has 20% equity.

My current investment property is financed through WF at around 4% as investment property. Refinanced with them without having to put down 20%, appraisal was $150k and note was a little under $120k.

I have roughly $60k in equity between my investment property and my PR. I also have about $30k in cash. The property I am looking at was appraised for $89k and I would pay no more than $70. My credit is about 740 and my current property cash flows over $350 a month.

Do I have any leverage when working with a lender? I spoke to a WF consultant last night and she said "pretty much" there was no way around the 20% down rule? She didn't sound very intelligent or willing to help so I didn't bother asking her what "pretty much" means. So that's why I'm here. What do you say?