Good points, but honestly, if your credit's solid enough, you can usually refinance later when rates dip. I've seen people start with higher rates to keep cash handy, then refi once the property's stable and repairs are done. Best of both worlds, maybe?
True, refinancing can work, but keep in mind it isn't free—closing costs, appraisal fees, etc. I'd run the numbers carefully first. Sometimes paying more upfront actually saves you headaches (and cash) down the road...
"Sometimes paying more upfront actually saves you headaches (and cash) down the road..."
Couldn't agree more with this. Seen plenty of clients tempted by lower upfront costs or higher leverage, but honestly, putting in a little extra at the start often means smoother sailing later—especially if the market shifts unexpectedly. Just my two cents though...
Definitely see your point about upfront payments smoothing things out later, but I wonder how much market timing factors into this decision. Like, if interest rates are super low, wouldn't it sometimes make sense to leverage more and keep cash on hand for other investments or unexpected expenses? I've had a couple of situations where clients put down a hefty chunk upfront, but then wished they'd kept more liquidity when a great opportunity popped up elsewhere. Of course, hindsight's always 20/20...
Curious if anyone's had experiences where a smaller down payment actually worked out better in the long run because of flexibility or investment opportunities elsewhere? Seems like there's no one-size-fits-all answer here.
I've actually seen this happen firsthand. A friend opted for a smaller down payment to keep cash available and ended up snagging a really good deal on another property later. Sometimes flexibility really pays off...just gotta weigh your comfort level with debt.
