When financing a rental property, lowering the purchase price matters far more than cutting the interest rate. Dropping from 8% to 5% saves only $600 monthly, but negotiating a lower purchase price has a much bigger impact on cash flow.
single-family home and suffer through max pain on that. So the other option you could do, you can use this as leverage and say, hey, if we finance this, that's really not enough for us to like help operate this business in a healthy manner. We want to be healthy, we want to make sure we can pay the bills. You can do— you really have two options. Well, actually you have three options technically. You can lower the purchase price, you can lower the interest rate, which the interest rate is probably number three option that's gonna drive it minimally. So if we take this down from 8%, which is a $9,200 monthly payment, down to 5%, we've only shaven off— you know, we're from $9,200 down to $8,600, let's call it. Not really moving the needle a ton, right? So we only shaved, let's see what, down to 5%, $7,000 off the total debt payment. That's not enough to move the needle.
