It depends on what the terms of your mortgage are.Pros-with no mortgage, you have higher cash flow.Cons-if you plan on buying more properties, you are better off saving the money for a down payment for your next place.The big questions are: can you get higher than 7% return if you invest that money elsewhere? 

This would allow for a longer carry back with up front cash flow.

The down payment is 25% down for single family residences and 30% down for 2-4 units.

The real property investment can be repositioned if it proves disappointing in its original form; it can be refinanced or recapitalized if it has too much or too e pensive debt; inflation over time bales out many bad purchases, and finally the investors knowledge, experience and abilities can be leveraged to turn around a cash flow negative property.I’ll provide an exampleThree years ago we purchased a note from a bank secured by two auto repair facilities with a large amount of excess land.  

In my mind you MUST have the cash to these mortgages off if your going to engage in these transactions.

Hi everyone, first ever post on BiggerPockets!
I'm looking for advice on a situation with an investment property my business partner and I purchased in June 2024 under our joint LLC in Springfield, OR. Here's the bre...

Seller won’t budge on price and it will be tight for cash flow.

They have no cash to qualify for a rental or even pay for the move. 

With $100k down it’ll probably be slightly negative cash flow.

Lastly, you won't be able to HELOC (or any cash-out equity) and 2-4 unit property in TX while it is still your primary residence.