Insight
Putting a larger down payment may generate more cash flow, but it may have a lower return on your money; consider your cash-on-cash return when deciding on your down payment amount.
This BiggerPockets article discusses the importance of considering cash-on-cash return when evaluating investment properties, particularly in relation to down payments and self-management. It emphasizes the need to analyze the full financial picture, including potential costs of self-managing or hiring management and market dynamics. The article also provides insights on choosing a realtor and questions to ask.
Putting a larger down payment may generate more cash flow, but it may have a lower return on your money; consider your cash-on-cash return when deciding on your down payment amount.