How Much SHOULD You Put Down on an Investment Property?

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How a lot ought to your down cost for funding property be? Do you have to enhance your down cost to maximise money circulation, or does placing all of your monetary eggs in a single basket restrict your skill to construct and scale your actual property portfolio? Or do you have to as a substitute repay that high-interest-rate mortgage early to maintain all of the money circulation on the finish of the month? We’re answering these questions in right this moment’s Rookie Reply!

With excessive mortgage charges, one rookie asks whether or not it’s higher to repay their dwelling with a seven % charge INSTEAD of investing in additional leases. Paying off that mortgage will get you an computerized return, however there’s a powerful argument as to why it isn’t the most effective transfer.

Are you doing all of your first home flip? One other rookie wonders whether or not they can negotiate when taking over a exhausting cash mortgage and if the juice is definitely worth the squeeze for a $50,000 revenue on their first flip.

Trying to make investments? Want solutions? Ask your query on the BiggerPockets Boards!

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In This Episode We Cowl:

Funding property down funds and the way a lot you ought to put all the way down to prioritize money circulation
Whether or not to maintain investing or begin paying off your high-interest-rate mortgages
Why you may’t simply have a look at the money circulation when analyzing a possible funding
Financing a home flip and negotiating with a tough cash lender (do you have to negotiate?)
What you must ALWAYS do earlier than you tackle a home flip to make sure your numbers are proper
And So A lot Extra!

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Observe By BiggerPockets: These are opinions written by the writer and don’t essentially characterize the opinions of BiggerPockets.