and the permanent rental rate is lower than metro regions. So, the strategy is not for regular rental, but to rent it on weekly basis as vacation rental. In this case, you may not use the same strategy as those used in big metro regions, like 100% financiing, putting down more cash may be necessary to reduce risks.

The general guideline should be, pay down to the extent that your mortgage payment will be equal to the rental income. You don’t want an aligator house that will eat away your cash month after month. In this case, down payment is very necessary. You should not set a fixed percentage, such as 25% or 30%, the downpay percentage should all depend on the market rent rate and your mortgage bill amount. Pay down as much to bring them equal or mostly equal. Carrying a small negative cash flow is okay, as long as your income is high enough to handle, but definitely avoid high negative cash flow.