How Much SHOULD You Put Down on an Investment Property?

Episode #484

Protect Your Properties with an LLC through Corporate Direct:
https://corporatedirect.com/biggerpoc...

Ask Your Question on the BiggerPockets Forums:
https://www.biggerpockets.com/forums?...

Episode Show Notes:
https://www.biggerpockets.com/podcast...

Join BiggerPockets for FREE 👇
https://www.biggerpockets.com/signup?...

Grab the New Book, “The House Flipping Framework”:
https://store.biggerpockets.com/produ...

Find Investor-Friendly Lenders:
http://biggerpockets.com/findlenders

Stop! Before Making a Large Down Payment, Read This:
https://www.biggerpockets.com/blog/re...

Connect with Ashley and Tony:
Ashley: https://www.biggerpockets.com/users/e...
Tony: https://www.biggerpockets.com/users/t...

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.


00:00 Intro
01:00 How Much to Put Down?
11:42 Pay Off High Rate Mortgage?
17:49 Financing a House Flip
24:47 Is This Deal Worth It?
29:24 Ask Your Question!