New yet serious investor based out of NJ

[Mario Ramales]

Hello BiggerPockets community,

My name is Mario. I am based out of NJ and I am seriously ready to start a career in real estate. I have saved enough to start buy my first multifamily. However, i have tons of questions. I will keep looking at the forums in search of my answers but if anyone here can help out directly that would be much much appreciated. 

Basically, i am debating whether it is best to use all my money for a 50% down payment, or use the power of leverage. Also, 30yrs or 15 yrs mortgage, which is better? I have these and many more.

My ultimate goal is to retire early. I am open to any suggestions that you may have or that have helped you get there.

Many thanks,

Mario

[Bram Spiero]

The more leverage the better (within reason). 

The lower monthly debt burden of a 30 year loan will give you more flexibility.

If you buy a property with 25% down which creates $200 cashflow, then if the market looses 50% of it's value for some catastrophic reason, you still have your cashflow and you can still pull out your original investment.

If the market appreciates by 50% you still have your cashflow and you can refinance and pull out all of your original money.

Good luck.