Do you prefer to use more cash (50%-60%) to get more positive cash flow, or pay less and use more leverage?
I have lived through a few recessions. I usually put 20% down and pay the debt down aggressively. My last deal went from 80% to 0% leverage in 4 years. Nothing will take down this fortress balance sheet.
I typically go with 0-20% down, depending on my lender, and then refinance my cash back out. I don’t leave cash in deals.
One of the biggest advantages of real estate is leverage. Just be careful not to overdo it, especially if you’re under-rented. My lender allows 15% down on rentals, and PMI is manageable with good credit.
If the deal doesn’t make sense with leverage (20-30% down), then I’d rather invest in an index fund. I like using leverage in real estate to let inflation eat the debt.
I usually go with 25% down to secure the best loan terms. It gives me a good balance between cash flow and leveraging my investments.