Meanwhile you are correct in pointing out the lower cost markets have less of a barrier, but housing in these markets are prone to have margin wiped out far quicker by contingincies.

Should I put it all down to pay it off quicker so I can move on to my second house investment after paying off the first or should I just put 20% down and purchase another house similar to the first with 20% down as well.

@Ray HarrellSellers will owner finance because (1) they will be able to sell for a higher price because they will sell to people who can’t get institutional financing, (2) they think the interest rate they receive on the money they financed, usually 6-10%, is better that the 2% bank accounts are paying (3) they get to spread out the gain on the sale of property over many years and not be bumped into a higher tax bracket immediately, or (4) they can sell the property faster as a buyer doesn’t have to wait 45 days to fulfill institutional lending requirementsBuyers may want owner financing because (1) they save the points and other fees associated with institutional financing (2) they may own the maximum number of properties financed allowable by lending institutions (3) they as full time real property investor may not be able to prove the amount of income necessary to obtain a loan (4) they may not qualify for conventional financing, only hard money, in which case owner financing may be at a much lower interest rate (5) they may have liens, judgements, etc. outstanding that make obtaining outside financing impossible, (6) they may want to close quicker than available with institutional financing.Please let me know if this makes sense

Obviously it depends on the comps, but generally speaking over improved properties don’t necessarily bring in very much more rent (maybe 5% more), but they do get more applicants and rent quicker (unless they are overpriced, then they will sit).

Best of luck as you expand into new markets - hopefully any coaches, mentors or systems you pay for get you where you want to go quicker. 

Some topics are bit taboo on here and unfortunately, negative always takes off a whole lot quicker than positive. 

.- much quicker.  

Hey @Dan Fendius, I think definitely talk with a lender to figure out your monthly, but honestly, do what is going to feel most comfortable and helps you take action quicker.

We all just want to see others succeed and share our experience to help you get there quicker.

The more the borrower knows, the quicker a HML can close.