How much do you put down?

[Daniel Klebba]

How much money do you typically put down on an investment property? If your giving a dollar value please give me an idea of the purchase price. Most banks are requiring 20-25% in Michigan but I'm not sure it's the best use of funds. Thanks, Dan

[David Latham]

Daniel, you are going to have to put 20 to 25% down on a conventional loan. There are other ways such as having the seller finance part of the down payment and 1 million other creative ways to do it. Just remember though it doesn't matter how much you put down if you're not hitting your numbers. Most people try to get at least 12% cash on cash return and $200 per door cash flow. I hope that helps.