down payment or no down payment?

[Stephen Leblanc]

Ok, here is my situation. I'm looking at buying a 4 unit apartment building for $85000. The total rents are $2225.00 and taxes are 1500 per year.

Up here in the great north, (Canada) I have the option to 100% finance this deal but the cmhc fee is 5-6%. Should I pay the 20% down to avoid this fee or keep my money to invest in another property? The 100% financing mtg can go for 25 years at about 6.5% locked in for 10years.

I want to use the 100% financing so I can buy the property for $3000 in legal costs instead of $20,000 ($17,000 down pmt/$3000 legal). Am I missing anything by going this way? The mtg pmt will be a bit higher but I figure I can offset this cost buy using the difference in the down payment money to buy more units.

Does this make sense, or am I setting myself up for trouble down the road.

Steve