Mehmet,
Think of it like this. You put down $10k on a $100k property and over 3 years it's value jumps 10% to $110k, you come out with a 100% additional profit return of your original cash investment of $10k. If you put down $20k on a $100k property, and in 3 years it appreciates 10 percent in value, or to $110k, you are now only up 50% of your original investment of $20k, with the $10k of profit growth, you see it's always better if there is appreciation, and your property isn't negative on month to month cash flow, to leverage OPM (other peoples money) more.
The downside I am seeing, is how to get more loans to use your other money elsewhere. I am seeing issues with properties that cashflow in the green, still raising my Debt To Income ratios considerably.
Can you tell me where you found a 4.62% interest rate and a 5% interest rate for only 10% and 5% down? The best I've seen today is 4.62 with 15% down and a HUGE origination fee at the front of 1.5% of loan amount through Mountain America Credit Union.
Thanks,
