Argyle, TX · Member since 2013 · 76 posts · 21 votes
Been looking for turn key buy and hold properties, having a difficult time finding ones that cash flow with 20% down using 6.5% -7.5% rates. Is anyone still buying/investing and putting 40-45% down to make sure the properties cash flow in the DFW area?
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
3w
You do realize when you put down more money (especially that much more) all you're doing is paying that negative CF upfront...and gaining nothing. You're behind before you even start. The cost of RE, the total cost, is all the cash that comes from your pocket...no matter when that happens.
Lender · MD · Member since 2025 · 182 posts · 69 votes
1h
Hi Carlos,
I'm seeing more investors ask the same question. Putting 40% to 45% down can improve cash flow, but it also ties up a significant amount of capital that could potentially be used for future opportunities. Sometimes adjusting the financing structure or expanding the search criteria can achieve similar results without committing that much cash upfront.
I'd compare the return on the additional capital you're putting down against what that money could earn elsewhere. If the numbers only work with a very large down payment, it may be worth looking at different properties or financing options before moving forward.
I'm a mortgage broker and work with investors throughout Texas. I'd be happy to help you compare different financing scenarios to see which structure gives you the best balance of cash flow and long-term returns. Feel free to send me a message.