If you have the money to place a large down payment, should you?

[James Lunt]

For reference, it would be a roughly $300k property that would generate ~$2,250 in gross monthly rent. The two scenarios:

1. 20% down payment: $48 monthly cashflow, 0.83% CoC ROI - not good

2. 50% down payment: $475 monthly cashflow, 3.57% CoC ROI - good

3. 70% down payment: $760 monthly cashflow, 4.15% CoC ROI - great

Based on the metrics in the Rental Property calculator, it seems like the more you put down up front the more you will get out of your investment. 

Given these numbers,is it better to put down more or less up front?

[Joe Villeneuve]

Forget the percentages and focus on the $$$$$$.  Here is what you really have:

1 - $60k DP, $576/yr cash flow, 104 years before you recover your DP and start profit.

2 - $150k DP, $5,700/yr CF, 26 years before you recover your DP and start profit

3 - $210k DP, $9120/yr cf and 23 years before you recover your DP and start profit

....the answer is, (cue the drum roll....and cymbals...)

Option 4:  None of the above