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Updated 6 days ago on . Most recent reply

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Robert Link
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Debating with 10% vs 20% down (First time buyer, house hacking)

Robert Link
Posted

I am buying my first property (as a primary) and plan to live there for a year and then rent it out. What's a better option for me? I am young and my long term goal to build an investment portfolio over time. I have the cash to put down 20% but think it is better to leverage my returns with 10% down and put the extra cash in a HYSA or stocks. 

Option 1: Conventional 20% down, rent: 2150 PITI: 1960 Cashflow: +190/mo but less leverage

Option 2: Conventional 10% down (extra $50 in PMI), rent: 2150 PITI: 2180 Cashflow: -30/mo but more leverage

My longterm goal is to build an investment portfolio.

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