Good deal/Which loan terms

[Michael Barido]

I have a deal I'd like for advice on. Buying a condo and have several options. Table format is the following - down payment % - cash flow - ROI - Down payment amount - Rate:

20% - $281.18 - 12.55% - $18k - 10%

25% - $336.85 - 11.18% - $22.5k - 9.875%

30% - $411.63. - 12.48% - $27k. - 8.875%

The closing costs are not included in the DP values but is included in the ROI above. I'm an accidental landlord and this is my first real investment (other rental I lived in and were VA loans). I'm thinking the best strategy is the 20% DP and higher IR but would like verification and thoughts on the closing costs. Thanks

[Chris Seveney]

Quote from @Michael Barido:

I have a deal I'd like for advice on. Buying a condo and have several options. Table format is the following - down payment % - cash flow - ROI - Down payment amount - Rate:

20% - $281.18 - 12.55% - $18k - 10%

25% - $336.85 - 11.18% - $22.5k - 9.875%

30% - $411.63. - 12.48% - $27k. - 8.875%

The closing costs are not included in the DP values but is included in the ROI above. I'm an accidental landlord and this is my first real investment (other rental I lived in and were VA loans). I'm thinking the best strategy is the 20% DP and higher IR but would like verification and thoughts on the closing costs. Thanks

 There is no right or wrong answer as it also depends on your overall financial situation. Based on the rates you provided I would do 30% down. Why? Because the $9k delta between the down payments, if I have that money its probably sitting in an account or a short term investment and would not be getting me the 10% that I am paying the interest on the amount that I did not put down.

At the end of the day, remember to consider your overall investment strategy, liquidity needs, and risk tolerance.