Is It Better to Buy an Owner-Occupant Property Then Put 20% Down or 25% For Rentals?

Is it better to put 20% down or 25% down when buying rentals when you first buy an owner-occupant property with 5% down first?

Show Notes

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 Lincoln specific, detailed analysis of a variety of strategies here:

https://RealEstateFinancialPlanner.com/model/NE/Lincoln/

Looking to buy or sell property in Lincoln, NE? Call Jake Grenemeier of Clover Real Estate Services with Next Home Integrity at [phone]. Or, check out his website at www.Clover.RealEstate or email him at [e-mail]. Jake specializes in helping real estate investors in and around Lincoln.

What is Lincoln Real Estate Investing & Real Estate Financial Planning™ Podcast?

Learn all about investing in real estate in Lincoln, Nebraska with a combination of real estate financial planning and modeling with numbers specific to Lincoln plus syndicated, more generalized recordings of live and pre-recorded real estate investing classes (not all specific to Lincoln).