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If this is for a rental property, then I think it's smart to put more down on the house to get a lower interest rate
Over time, you will pay less in finance charges
Your cash flow will be higher
Overall, it's a good move.
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I ran out of space with the question, but the flip side would be that I'll be taxed on all the positive cash flow. Is the tax break better? Would it be a better idea to consider investing the money in something else?
If I have positive cash flow immediately, then is it better to invest that money in something at that point?
You can't deduct the entire mortgage payment
You only deduct interest
so the interest deduction will be lower but the positive cash flow and savings from paying less in interest will more than offset the additional tax on the difference in interest payments
Stated another way, if I were to put less down and keep more money in the bank, the rent charged would not cover my mortgage and I would have to pay money every month to make up the difference. If I put more down and have lower mortgage payments, I probably won't have to pay anything because the rent would cover my costs. The second situation would be better from a tax perspective for me.
Yes, it would be
Thank you for your advice!