Does a 40% Down Payment Ever Make Sense?
Hello everyone! My husband and I are investors and have 3 doors in Los Angeles - all LTR. We're interested in STRs, but given the current interest rates are nervous about having to keep an STR afloat if/when the property isn't performing well. We are considering putting 40% down with a conventional mortgage to ensure that we can make payments on a bad month... and wondering, does this ever make sense?
For some background, we'd be pulling this capital from a stock portfolio in which we are very over-invested in one industry, so my husband is eager to divest a good amount and put it in RE.
TIA for your thoughts and input!