I get where you're coming from, but honestly, I've seen the opposite play out too. A client of mine opted for a lower down payment to keep cash handy, and when the market dipped unexpectedly, they found themselves underwater pretty quickly. Having equity built up from a bigger down payment can sometimes cushion you against market swings. It's always a balancing act, but liquidity isn't always king—especially if the market turns south...
Good point—though I've also seen investors tie up too much cash upfront and then scramble when unexpected repairs or vacancies pop up (hello, plumbing disasters...). There's definitely a sweet spot between equity cushion and liquidity. Always easier said than done, right?
Yeah, finding that balance is tricky. When I bought my first rental, I went heavy on the down payment thinking I'd save on interest long-term. Seemed logical at the time. Then a few months later, the roof decided it had enough and started leaking right into the tenant's living room. Suddenly, my carefully planned cash cushion was looking pretty thin. Lesson learned: liquidity matters more than I initially thought.
Now I lean toward keeping more cash handy, even if it means slightly higher monthly payments. It's not ideal paying extra interest, but having the flexibility to handle surprises without panic is worth the trade-off. Plus, you never know when you'll spot another good investment opportunity—having cash available can make all the difference.
Totally get where you're coming from—been there myself. It's tempting to chase lower interest, but having cash on hand is a lifesaver when things inevitably go sideways. Had a similar issue with plumbing once... not fun. Keeping liquidity gives you breathing room and peace of mind, even if it costs a bit more monthly. Sounds like you've found a solid approach that works for you.
I hear ya on the plumbing nightmare... had a similar fiasco with a busted water heater last winter. Nothing like an ice-cold shower to make you rethink your financial choices, lol. I used to obsess over getting the lowest possible interest rate, but after a few unexpected curveballs, I've learned the hard way that cash is king. Sure, paying a bit more monthly stings, but having that cushion when the roof leaks or the furnace decides to retire early is priceless. Plus, investment properties always seem to have a sixth sense for when you're low on funds—it's like they wait until you're broke to spring a leak or something. Keeping some liquidity definitely helps me sleep better at night.
