Need Advice on Financing a new purchase

[Koushik Saha]

Hello everyone,

I'm in the process of securing a loan for a new (my first) rental property purchase. I have already signed the purchase contract. However, I'm facing a dilemma on what loan structure I should strategically opt for. My loan agent has laid out few options for the loan. The purchase price is $410K.

Should I go for 15%, 20% or 25% down payment, taking the current high interest rate situation into consideration? Should I put more money down to keep the monthly payment down and have cashflow? Or keep money in hand for the next purchase and refinance if and when rates come down in future? Just to add context I'm expecting to be at 78% of ARV.

This is my first real estate investing venture after listening to Brandon's book so hoping the experts in the community will help me with some guidance. Thank you!

[Nicole Heasley Beitenman]

Hopefully you can find a lender with lower rates/fees as the others have suggested (although I would be wary of the cheapest lender. I've used the cheapest lender in the past, and they were cheap for a reason). Do you cash flow regardless of the scenario? If so, I'd always put the lowest amount down. The additional funds can be used for reserves, down payments on other properties, or closing costs when you refinance.