How Much SHOULD You Put Down on an Investment Property? (Rookie Reply)

Real Estate Rookie

How much should your down payment for investment property be? Should you increase your down payment to maximize cash flow, or does putting all your financial eggs in one basket limit your ability to build and scale your real estate portfolio? Or should you instead pay off that high-interest-rate mortgage early to keep all the cash flow at the end of the month? We’re answering these questions in today’s Rookie Reply!

With high mortgage rates, one rookie asks whether it’s better to pay off their home with a seven percent rate INSTEAD of investing in more rentals. Paying off that loan gets you an automatic return, but there’s a strong argument as to why it isn’t the best move.

Are you doing your first house flip? Another rookie wonders whether they can negotiate when taking on a hard money loan and if the juice is worth the squeeze for a $50,000 profit on their first flip.

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In This Episode We Cover

Investment property down payments and how much you should put down to prioritize cash flow

Whether to keep investing or start paying off your high-interest-rate mortgages

Why you can’t just look at the cash flow when analyzing a potential investment

Financing a house flip and negotiating with a hard money lender (should you negotiate?)

What you should ALWAYS do before you take on a house flip to ensure your numbers are right

And So Much More!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-484

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