Interested in getting different people's perspectives on this topic. From 0% down to paying for a property in full cash, where do you feel is the sweet spot for loan to value, leverage, and cash flow?
What do you consider the sweet spot for LTV?
byu/Harry_Coolahan inrealestateinvesting
Posted by Harry_Coolahan
3 Comments
20% down for a conventional loan to maximize leverage while still avoiding PMI.
somewhere around 75-80% feels right to me – enough leverage to make the numbers work but not so much that one bad month ruins everything
It’s not LTV it’s cap rate. Loan rate has to be less than cap rate or you have negative leverage.