Money Down

I plan on buying my first investment property very soon. I have a HELOC, but should I use it? I am debating wether I should do 5%, 10%, 20% or even 0 down on these properties. Other than the obvious reasons (cash flow, etc.) why should you put more or less money down on an investment property?

Comments(1)

  • ray_higdon25th March, 2005

    Well more money down will reduce yuor monthly expenses but you earn no interest on the money you put down. Leverage is controlling a large asset with a small asset and if you put less down, you can get more properties and hence build a bigger net worth faster.
    [addsig]

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