When you finance a property how much do you have to put down?

[Isaac El]

I am new and looking to buy my first long term rental, something small looking 2 - 4 fam.  Question is generally how much money do you have to put down? Or would you recommend to put down?

[Joe H Watson]

Hi Isaac, I understand why you are concerned with the down payment amount. I am wondering, have you found any properties in your area or somewhere you are interested in? If you have found a property and you know the price that is great, if you go a couple of steps deeper you will be able to make a better assessment of an appropriate down payment. If the property is up to bank financing standards I would try to purchase it with a low 3.5% fha loan (my opinion best for cash flow and infinite return strategy is a property that is up to standard of the lender but not newly renovated). I am a leverage investor because I am young and do not plan to rely on my properties cash flow for my life style. Rather i will use my properties cash flow for reinvestment into other properties. When you find out more information about a specific property you may be able to negotiate seller financing with a down payment and terms. Remember that investing is not about loving the property or the price or the amount of the down payment. Investing is about finding an asset within your budget that gives you a return you deem as decent.

Wishing you the best in all your future investing, Joe