More insight of the current numbers (considering a 4.5% interest rate for the new loan)House 1Monthly payment(PITI+HOA): $1,700/moPotential rent: $2,300/moCashflow w/o management company and allowance for repairs(house is in great shape): $600/moHouse 2Monthly payment(PITI+HOA): $3,964/mo (if offer is accepted but I believe the case study is valid for any other house)3964-600 (cashflow)-1700(mortgage first house)----------------------$867 I have to come up extra with every month.In this particular house there is also a room with bath that could be rented for about $800/mo (efficiency, as we call it down here).

To be the sponsor I look for 50% of equity upside and I look to give out 8% preferred return.Some passive investors focus in on that extra 1 or 2% preferred return but I would care more about the sponsor running the ship and the property.Extra return sounds good on paper but 12% of nothing is nothing. 

There is no cap, or rule, or extra tax for posting a large gain in your IRA.

If that extra $4,000 doesn't make it a deal for you, you can still walk away. 

I'd rather have just a decent place with all the extra in cash-flowing rental property.  

I have been known to buy extra on those sales. 

It does look like some data mining based on key words, a link here, county records there...Always trying to sell you something extra... 

Then I asked, how much are you putting out extra per month?

But fixing things quickly maybe keeps the tenants for an extra lease, which is worth it as well.

My question is, will it be a better decision to put 20% down on the property I purchase in order to avoid PMI; or to put 5% down and use the extra cash to potentially line my self up for another acquisition in the near future?