Question on how much to put down for down payment!

[Laramie Hiebner]

I am looking to move into a duplex next fall and am currently in an apartment. Aka house hack. My question is what is the advantages/disadvantages to putting say 3.5% down vs 20% or 10% I understand putting more down avoids mortgage insurance. Also, would it be smart to put 3.5% down on 6 properties or 20% on one?

[Jonathan Safa]

@Laramie Hiebner, I don't agree with people who say avoid lower downs because of PMI or points. The real question you need to ask yourself: what is my end goal; am I investing in this for the short run cash flow, or am I more concerned about a buy strategy that takes appreciation and my equity in the house into consideration. Basically, am I investing for cash flow, or am I investing for equity? 

If you want to invest for the short run, get a lower down, have more cash available for other investments, and try to maximize the cash flow after your mortgage and any mortgage insurance you may have. (This was the right move for me with an Airbnb property I have, short term vacation rental, not concerned with my equity, just maximize my dollar).  

If you want to invest for the long run:

- dump more money into your house, and remember you are investing for equity.  

- Don't concentrate on the cash flow

- Make additional payments towards your principle every month. Keep consistent. 

Best of luck to you!