Need quick help - Down Payment or not?

Rehab property that I can get for $225. ARV of $300. Needs about 20K of work.


I have the funds for $100K down with money still left over for the rehab work, but have heard time and time again to go with 0 down. If I go 0 down and pay interest only, where I can have a lower payment by putting a large amount down…aren’t I letting the bank have some of my profits?

In a nutshell, is it still best to go 0 down, even if I have the funding?


What are you doing with the property? Buy and hold? Buy, fix, and retail?

I would go the least out of pocket that I could if I were to buy, fix, and retail…if you have ready access to funds, can complete the repairs quickly, and it will sell quickly on the back-end.

To answer your question, “yes” you would be giving the bank some of your profit by financing so get in, fix, and get out!


I agree about doing it as quickly as possible.

Plan is to fix and flip ASAP.

If you can get 100% interest only, that’s what I’d do…others may have differing opinions.


Personally, the spread between ARV and purchase price (including repairs) is a little slim for my taste. But I guess we all do have our own requirements as far as what % we will pay of ARV. Did you equate holding costs or marketing costs in there as well?

Anywho, to your original question, leverage is the key to this business-for the most part. Like Keith said before, get in and get out, and take your check at the end. If you can qualify for zero down there is no reason you shouldnt do it. Watch for prepayment penalties. I think I too would go with an interest only mortgage.

Hope this helps,


Thanks for the advice, Gentlemen.

I did figure holding costs, and used the Cost analysis worksheet with a 30K profit, which got me to $230 maximum. I will offer $225 with gives a little room for a counter. Other than that, I walk.

Good luck! :slight_smile: Hope it all works out


By the way, I am a new investor, so after doing the numbers, making $30 K doesn’t sound that bad. Hopefully in another year or two, it won’t be enough for me, either! :wink: