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Updated about 6 years ago on . Most recent reply

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Hen Ley
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How much should you have to put down for a property to cash flow?

Hen Ley
Posted

Looking at purchasing a property-  If I put at least 30% down it will cash flow, however, is that too much?  Should you have to invest that much to generate cash flow?

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Jason D.
  • Rental Property Investor
  • St. Petersburg, Fl
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Jason D.
  • Rental Property Investor
  • St. Petersburg, Fl
Replied

@Hen Ley ideally, nothing. In a perfect world, the property should cashflow if 100% financed. Otherwise, the first number of years of cashflow are simply paying your downpayment back to you, and not really cashflow at all.

That being said, that's not possible in some areas, so it comes down to your comfort level and the return you're looking for. There's no right answer....

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