How much to put down on rental properties?

[Eric P.]

Is there really a point to trying to avoid PMI? For example. I'm looking at breaking into RE investing through long term rentals, starting w/ houses around $100k and renting for $1250-$1500. Is it worth me putting down 20% just to avoid PMI? Or should I just go with the lowest amount possible for a down payment to get approved for a mortgage. I have about $30k to invest with. I'd like to keep $3,000 for closing costs and $5,000 for emergencies. I figure I could do 1 house this year at 20% or possibly 2 houses at 5%. I have perfect credit and an extra $1,000 a month I can do whatever with after bills, investments, and fun money.

[Russell Brazil]

@Eric Popso though Homepath properties only require the 10% down payment, they also have significantly higher closing costs, including the buyer paying 100% of all transfer taxes.  I purchased a Homepath property with 10% down, and if I had to do it over again, I would have just bought a similar property at 20% down and more normalized closing costs.  The extra money would at least be there in equity instead of disappearing into the nothingness of closing costs.