ROI VS Cash Flow- Need Advice

[Braxton Warren]

I am under contract on a condo in northern Colorado that will be my first rental property and I am working the numbers and would like to get advice as to how much I should put down based on ROI vs Cash flow. ROI is based on what i believe my annual net income will be divided by how much I am bringing to closing (Mortgage and all other closing costs already estimated by my lender). What would you choose and why? Thank you in advance!

Option A) 20% down + plus closing costs= 51,860. ROI= 12.86 Cash Flow: 550

Option B) 15% down + plus closing costs= 40,620. ROI= 13.88 Cash Flow: 470

Option C) 10% down + plus closing costs= 29390. ROI= 15.43 Cash Flow: 380

[Alexander Felice]

option C every single time.

Cash gives you the ability to move to the next deal and move on it more quickly. Also, cash gives you the ability to make that same down payment at any time later, once it's spent on the mortgage it's much harder to spend the equity.

you're calculating ROI on cash, but you're not quantifying the potential ROI on the remaining cash you have by putting less money down.

Also using option C you're putting down 56% as much cash, but making 69% of the same income!

Also again, The repayment period for the extra cash ($22470) at the spread of additional cash flow is 132 months!! Think how much you can do with $22,470 over 132 months!