I am getting ready to purchase a property for $102,500. If I were to put 20% down, my monthly cash flow after all expenses would be $333/mo, the cash on cash ROI would be 14.91% & the total cash needed would be $27K. Or I could go with 0% down (NO PMI) & my monthly cash flow would be $188/mo with a cash on cash return of 24.96% and the total cash needed would be $9K. I understand that it depends on what I want (short term return VS long term return) but is it wise to waste 6K on banking fees with 0% down VS $1,300 on 20% down. Hope this makes sense. Looking for advice.
You really answered it yourself, what are you looking for? Are you looking for more cash flow now, or are you looking to use your cash for the most further investments? If you're looking for more cash flow, then obviously use the 20% down. However, if you are looking to more seriously grow your portfolio, then take the 0 down and then you can use the 20% down on a different property. To be honest, that might end up being a better deal anyway even in the short term if you can find a second good deal.