How Much SHOULD You Put Down on an Investment Property?

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

With excessive mortgage charges, one rookie asks whether or not it’s higher to repay their residence with a seven p.c price INSTEAD of investing in additional leases. Paying off that mortgage will get you an automated return, however there’s a powerful argument as to why it isn’t the very best transfer.

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

Seeking 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 right down to prioritize money stream
Whether or not to maintain investing or begin paying off your high-interest-rate mortgages
Why you’ll be able to’t simply have a look at the money stream when analyzing a possible funding
Financing a home flip and negotiating with a tough cash lender (must you negotiate?)
What you need to ALWAYS do earlier than you tackle a home flip to make sure your numbers are proper
And So A lot Extra!