{ "media_type": "text", "post_content": "Experienced investors, buying my first rental property for 168k. For primary property I know it make sense to get the lowest rate by putting down as much as possible. But for this one I'm getting 25% down at 2.875% and 20% down at 3.625% no points. Saving 8400 in upfront costs with 20% down. What do I do? Also going to fix it up estimated costs 15k.", "post_id": "5f1858dd71d20d00209c1e50", "reply_count": 8, "vote_count": 1, "bowl_id": "5a5242b78e26290018502ca0", "bowl_name": "The Real Estate Bowl" }

Experienced investors, buying my first rental property for 168k. For primary property I know it make sense to get the lowest rate by putting down as much as possible. But for this one I'm getting 25% down at 2.875% and 20% down at 3.625% no points. Saving 8400 in upfront costs with 20% down. What do I do? Also going to fix it up estimated costs 15k.

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What’s fair market rental rate? Ideally, you take rent * 0.7 (taxes) for your NOI. Subtract from that your principal payments to test your cash flow. You’ll want positive cash flow in order to scale (get other properties)

20% down everyday. Make your tenants pay for the rest and preserve liquidity. Always be thinking about the cash on cash return. I’d be curious to see what those comparative %s are in this case.

Absolutely! Just locked in the 20% rate. Factoring in 15k rehab costs cocroi is 9% vs 9.5% at the lower interest.

How do you get 20% down on a rental? I've been told I need 25%

Thanks!

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