25% down on my first rental property

[Grant Amsberry]

I am in the process of getting financing for my first rental property. The lender wants 25% down. Is this standard? Are other lenders more flexible?

[Jill F.]

In my area, I don't see much that I'd want to buy that cash flows decently ($150/door/month) financed over 20 years with less than 25% down. We sometimes put up equity in other property in lieu of 5% to get the downpayment down to 20% but that hurts cash flow. I really, really don't like deals that don't cash flow at least $125/door at purchase and even then it helps if there is good potential for value add and a rent increase.