Large Down Payment

[Jim Cummings]

I'm contracted to buy 2 Single family Homes in College Station as part of 1031 Exchange. Both properties are the same price.

One is a 4/2, 1950 SF. (Ideal Rental Size). Excellent Neighborhood, Built 1997. Basic Finish out - laminate Counters, lots of carpet, etc. GOOD condition - NOTHING needed to get it rented at about $1700 / Month. 

The other is smaller (1620 SF) 3+Small office. Built 2004.Excellent Neighborhood, has a higher level of finish out - Granite Counters, etc. NOTHING needed to get it rented at about $1700 / Month. 

Rather than splitting the 1031 proceeds 50/50, I'm considering making the minimum 25% Down Payment (DP) on one property and a much larger down payment on the other - with the idea of getting one property paid off in the next few years.  Take into account that our age and Wife's risk aversion plays into the decision scenario rather than buying a number of properties all with minimum DP.

Any thoughts, ideas from the members appreciated.