What is the ideal down payment when purchasing a rental property?

While some real estate investors may barely scrape together the minimum down payment, there are advantages to putting down more. Additionally, changing your strategy to allow for a smaller down payment may also have advantages.

In this mini-class, James discusses how different down payment amounts can affect interest rates, overall return on investment, and changes you are likely to see in both interest rate and cash flow.

Check out the video and interactive charts from this class here:

https://refp.substack.com/p/how-much-should-you-put-down-when

In this class, James discusses:

• Not just down payment... total cost to close + reserves + probably cumulative negative cash flow
• How much should you put down?
• Interest rates vary based on owner-occupant and non-owner-occupant
• Interest rates vary based on loan program
• Interest rates vary based on down payment
• Return in dollars - what changes and what stays the same?
• Return on investment - how does it change with various down payment options
• Chart showing effective interest rate for various down payment options (owner-occupant and non-owner-occupant investor loans)
• Chart showing monthly payments for various down payment options (owner-occupant and non-owner-occupant investor loans)
• Chart showing difference in monthly payment (and therefore cash flow) for the same down payment
• Chart showing return in dollars for various down payment options (owner-occupant and non-owner-occupant investor loans)
• Chart showing return on investment for various down payment options (owner-occupant and non-owner-occupant investor loans)
• Plus much more...

Property prices and interest rates are high, while rents are lagging. Cash flow is both more important and harder to achieve than ever, even with our 88 strategies to improve and maximize it.

But a debate still remains: should you use smaller 5% down payments with the Nomad™ real estate investing strategy to acquire your rental properties, or should you save up 20% and buy non-owner-occupant properties at a slightly slower pace?

In this special class, James will conduct a thorough comparison of the two strategies across 300 US markets, as the numbers vary depending on your local market's prices, rents, and income.

Which strategy gives you a higher net worth? Which gets you to financial independence the fastest? Which is the safest, and which has the most risk? Plus much more.

After attending this class, you should have a much clearer understanding of whether you should seriously consider the Nomad™ strategy or opt for a slightly slower pace with 20% down payments when acquiring up to 10 rental properties.

See how putting 5% down compares to putting 20% down to acquire 10 properties compares in 300 US cities.

Check out the video and interactive charts from this class here:

https://RealEstateFinancialPlanner.com/model/nomad-versus-20-down-payment/

Or, see The Villages specific, detailed analysis of both the Baseline Nomad™ strategy and 20% down payment strategy here:

https://RealEstateFinancialPlanner.com/model/FL/The_Villages/

How to Get the Down Payment When Buying Rental Properties

There are two primary ways to deal with down payments when buying rental properties: first you can REDUCE the need for them and second you can focus on ways to PRODUCE the down payment required. In this mini-class, James discusses strategies to produce the down payments when buying rental properties.

Check out the video of this class here:

How to Get the Down Payment When Buying Rental Properties - Video Recording

In this special mini-class for the Real Estate Financial Planner™ coaching program James covers:

• We're not just talking about down payment... but...
• Reduce and Produce
• Will it work for me? Fools will... and intelligent, gritty, resolved people will...
• “Investment Cards” (aka Credit Cards)
• Security Deposit
• Maintenance Reserves
• Property equity
• Depreciation
• Retirement Account
• Family Members (Legacy Nomad™)
• Sell stuff you don’t need or want
• Saving
• From regular job, part-time, extra job, business to fund your retirement (or build your fortune)
• Partnering
• Rents (including House Hacking)
• Lease-Option Fees
• Plus more...