4 Bed 2 Bath $69k - More COC return or More Cashflow

[Christopher Derr]

A MLS listing $69k 4 bed 2 bath came on the market.

It is a 1 story recently converted to a 2 story new siding, windows, roof, AC, in 2012 when it was converted.  I believe market rent will be between $800-850 (I am going to have my property manager give me her opinion)

Taxes are currently $540/yr but it has a special assessment and military/homestead credits so I think it will be closer to $1200/yr once the purchase price hits the assessors office.

Repair 10%/Vacancy 5%/Prop Management 8%

Insurance $50/mo.

I want to see $200/mo cashflow and 12% cash on cash.

Portfolio lender will loan upto 85% BPO no specific downpayment requirement aslong as it has a 1.25 DSCR and 85%. 25yr not 30.

Do I put more down to make $200 cashflow but reduce my Cash on Cash or do I leverage higher get $155 cashflow and put less down so my ROI goes higher? My mindset is more leverage gives me more $ for another deal, but I don't like reducing cashflow. $200 feels a lot better than $150. (its closer to $200 if it was a 30yr loan but its 25 year commercial at 4.6%)

Thoughts on my numbers or opinions on what you would do?

Thanks