During a call with one of my friends Tim Herriage, we discussed how you might calculate your down payment for an investment property. His premise was based on the idea that as you get into more complicated deals you should be more specific on knowing what the ratio of your rental income is against your debt service. My philosophy behind investing in single-family homes is to take a conservative approach in accumulating properties in good condition. If you do it that way then you are almost guaranteed to win without taking any unnecessary risks.
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