How much to put down?
I'm under contract on my 4th place (5th door). I will be using a HELOC as part of my down payment. That rate should be at about 4%, my loan will be at 4.875%. I am trying to figure out whether to put down 15% and pay the PMI up front or to pay 20%. The up front PMI will cost about $2600. I know from a purely numbers standpoint putting down 20% is better, but if I only put 15% down I could potentially buy more properties sooner. If I put 15% down with the lump PMI I will be paying $39k to close. If I put 20% down, I have to come to the table with more like $47K. My other consideration is that this will be a nightly rental (something that is new to me) and I will have to furnish it myself which I am hoping I can do for around an additional $8K. I sincerely appreciate any and all advice :)
Megan