Small monthly payment with long term loan or the other way around
Hello, I am looking at buying a multifamily property with 4 units. I already have one apartment for rent, mortgage free, and I was wondering what is smarter as I need to get a loan for this new one:
- smaller mortgage monthly payments but longer repayment plan, or
- bigger monthly payments, which means less cashflow, but shorter period of loan.
Number 1 means more cashflow which could be invested somewhere but number 2 means a loan which could be repaid in 13 years instead of 20. Then the cashflow is much bigger.
Any suggestions for one or the other?