My secondary goal was to see if anyone had feedback I had not considered.Originally posted by Joshua Dorkin:Any well written post on a blog on our member blog system will be highlighted on the front page of the system.

Much of your down payment required will hinge on the buyer's abilities, credit, capacity, management experience, assets and the property will be assessed as to value, condition, location, market and collateral issues.Commercial loans are on a case by case basis, not at all like secondary market residential lending.

My math says you're still $72 poorer, so, as far as I can tell, that's just dumb.

I had done the math 1000 times, researched oodles of data and theory, and made conservative 25% down purchase.

If you want to hold it then know the rental market and do the math to compare for cost of holding the property vs FV.

Also, your math is wrong. $10k is < 30% of $35k and even if we were making a 40% profit so what?

It will be at the current rate beating out the higher rate you may get if the loan had matured.I'm hearing in the threads that many are looking for the next deal and having to lower margins, in buy-n-hold deals doing that with higher leveraged transactions can lead to trouble (125% DTI), don't buy just to buy, make sure it fits in the portfolio and works with the long term plan.If you have acquired several properties and getting close to the secondary limit or other lending limits (loans to one borrower) you might look into a blanket mortgage with release amounts on each property.

The math is not that hard.

Same with condition, better location, quality of construction, a more popular style, lot size, being on sewer, or a comp having deficiences, but all of these issues can be justified in the market.Bottom line, secondary market, FHA, VA, USDA will require at least one comp being higher than the sale price, so if financing is involved look for a higher comp.

I just did some bar napkin math to compare the Conventional vs FHA options assuming a 30 year term and purchase price of $500k:Conventional Mortgage:Purchase Price $500,000 Down Percent25%Down Payment $125,000 Rate5.5%Mortgage Balance $375,000 Payment/Month $2,150 Interest Portion of Payment $1,719 FHAPurchase Price $500,000 Down Percent3.25%Down Payment $16,250 Rate5.00%Mortgage Balance $483,750 Payment/Month $2,622 Interest Portion of Payment $2,016 The FHA rate will cost ~$300/month extra in interest.