Would you put down 5 % or 20% percent in my situation.

Question

My situation I have 260,000 Cash

I am now in contract on a house for which I will have about 70,000 Invested into the deal leave me with 190,000 left over

I would like to have 50000k in reserves, Which puts me at 140,000 left over for further real estate deals.

Me and my girlfriend are planning on buying a house around the 600,000 purchase price here in California and debating whether I should put 5% down and live in the property or put 20% a property and rent it out. My senses tell me to put down 5% which would only be about 30,000k into this deal still leaving me with 110,000 ish for further deals. Any thoughts on this Thanks

Dylan Vargas · Answer

@Patrick Thomas Dickinson Welcome! I would keep cash. So, if you need a place to live and can afford the payment I would only put %5 down and keep cash for more deals. Never hurts to have cash around so you can strike when a deal comes along. Good luck and keep us posted.

Would you put down 5 % or 20% percent in my situation.

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