Determining the best amount to put down is really just a math problem: based on how much capital you have, what's the best allocation?

Secondary goal is minimizing headaches.

Just Don’t know how to look at the math and I’m concerned that variable rates will increase considerably.

You would have to work 400 hours at $50 an hour to make $20,000.Do the math, make a decision.

Once you have that nailed down, then it's a question of doing the math on possible deals and finding the best submarket for appreciation and/or cashflow.All the best,Jon

I don't have much experience with them, but since they aren't selling you a conforming loan (ie a loan being sold off to the secondary market of Fannie Mae / Freddie Mac), there is little uniformity. 

Let’s be clear: an umbrella policy is secondary, not primary liability coverage.

I would suggest you consider taking out a home equity line of credit to access the equity in your current home as cash for a secondary rental investment property purchase. 

If this is a desirable asset, back of the napkin math shows you'd need to get higher than $23 to make it pencil.

Just out of curiosity, what's your concern with selling the loan on a secondary market?