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Subject:  Re: question: down payment on my first home Date:  5/14/2013  6:41 PM
Author:  floridaInvestor1 Number:  125282 of 126961

Hello all, thank you for your replies!

Actually, I currently live in the same residential complex as where I am about to purchase. The monthly payments that I mentioned ($1,750 with 10% down or $1,540 with 20% down) actually take everything into account: mortgage, insurance, taxes, association fees, PMI, etc. I believe these estimates to be very accurate (give or take $50). The rent range $1,750-1,950 is broad in the area and it has been going up recently. The only thing that I cannot possibly estimate are potential repair costs, but the general condition of the house is very good (engineer already looked at it).

What I had no clue was that the lending rates vary depending on what you intend to do with the property. I actually had asked the lender representative if the fact that I might rent it make any difference and she said NO. Curious. The realtors did not mention anything about this either and they know what my plans are, however, i guess they are expected to avoid mentioning anything that might make me back down. I need to do some research about this. I haven't signed anything that prevents me from renting the property, of that I'm 100% sure.

So you think in general I would want to put the lowest down payment possible? My main question is whether you think its best to have a lower down payment and a neutral cash flow (maybe negative with repair costs) or a higher down payment and a positive cash flow (maybe neutral with repair costs)?

... and if I need 30% down, the deal is off
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