Conv. Loan. 25% down for better rate?

[Blake Hansen]

Just had my first offer accepted (woohoo) and was planning to put 20% down - but Mr. Moneyman tells me I’ll get a full point reduction on my interest rate if I put 25% down. I’m planning to BRRRR this so does this rate really matter all that much and wouldn’t it be better to keep this cash ($8750 more) in my pocket to use towards rehab costs? Mr. Moneyman is REALLY advising against only putting 20% down but I thought less cash in at this stage was a better strategy. Wrong? You tell me...

[Eric X.]

@Blake Hansen

You are the only one that can answer that question.  Some investors are super gungho about maximizing leverage and putting down as little as possible as long as the property cash flows.  Some investors put 20 ,30, 40, or 100% down.  

How badly do you need the 5%? how does the cashflow look at each downpayment/interest rate?  Personally I don't mind putting down 25% or only cashing out 75%. 

Really no right or wrong answer. Just choose based on your own financial situation.