Is It Better to Buy an Owner-Occupant Property Then Put 20% Down or 25% For Rentals?
Property prices and interest rates are high, while rents are lagging. Cash flow is both more important and harder to achieve than ever, even with our 88 strategies to improve and maximize it.
Another question common rises to the top of the list: I’m going to buy an owner-occupant property with 5% down first, but then… should you put 20% down when acquiring your rental properties, or should you save up a little more and put 25% down even if it means a slightly slower acquisition pace?
Putting 25% down does get you a slightly better interest rate and because you’re borrowing less cash flow is slightly better too. Will that make up for having to wait a little longer saving up for slightly larger down payments?
In this special class, James will conduct a thorough comparison of the two strategies across 300 US markets, as the numbers vary depending on your local market's prices, rents, and income.
Which strategy—20% down or 25% down—gives you a higher net worth? Which gets you to financial independence the fastest? Which is the safest, and which has the most risk? Plus much more.
After attending this class, you should have a much clearer understanding of whether you should seriously consider taking the extra time and effort to save up 25% down payments or push to acquire as quickly as possible with 20% down payments when acquiring up to 10 rental properties.
Check out the video and interactive charts from this class here:
https://RealEstateFinancialPlanner.com/model/20-versus-25-down-payment/
Or, see Fresno specific, detailed analysis of a variety of strategies here:
https://RealEstateFinancialPlanner.com/model/CA/Fresno/
