Originally Posted by Peaches

Whatever amount you put down, you still have $X invested in equity in the property (i.e. the downpayment, monthly equity payments, appreciation, etc.). Saying that you must put down 25% to "break even" makes no sense. You can put zero down on it, invest the 25% elsewhere and still "break even".

When I was married we had a piece of rental property. We had 5% into it and the rent JUST made the loan payments. Where the money came in was the appreciation of the property.