Investment Property 15yr or 30 yr Mortgage

Monsey, NY · Member since 2013 · 2 posts · 0 votes

Wanted to get opinions on this.
i am buying an investment property to rent out.
plan on owning the house for 7-10 years than selling it.
$105k for the house should i do a 15 year or 30 year?
with 15 it will be paid off faster but higher per month payments.
with 30 i will make more profit per month and have more cash flow.

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Joel OwensBusiness Member

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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes

13y

The 15 year will saddle you with a higher payment. Many markets are still in a down cycle.

I would keep the 30 year and save the additional cash and savings for more properties.

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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
13y
The 15 year will saddle you with a higher payment. Many markets are still in a down cycle.

I would keep the 30 year and save the additional cash and savings for more properties.
Podcast Guest on Show #47
NNN Invest53 Reviews
Website View Page
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James H.
Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
13y
With a 30 year you can always add extra in your flush times to reduce the time of repayment at your option.
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Jennifer Lee
Real Estate Broker · Gibsonia, PA · Member since 2013 · 828 posts · 260 votes
13y
It depends on your reason behind it.
Lower cash flow? 30 yr
Pay it off quicker? 15 yr
But we don't like debt so....not norm here ;)
We now have 10 yr on primary home.
Investment was 5 yr arm and we begged.

Cash and equity other deals.
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Terry HershbergerPro Member
Investor · Nipomo, CA · Member since 2011 · 227 posts · 76 votes
13y
I think it depends on what your goal is and do you need the cash flow. Also at what interest. Work it both ways and see where you would profit more in the long run.
Generally, I tend to take the 15 year do to my goals.
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Ben Steinmetz
OP
Monsey, NY · Member since 2013 · 2 posts · 0 votes
13y
-My goals is for more investments so the cash flow is important
- 15 year will be $850 per month after all my cost includes tax and insurance. rate -3.75%
-30 year will be $665 includes all. & Rate - 4.25%
rent will collect approx $1400 a month.
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Kyle J.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
13y
If cash flow is your primary goal, then you'd want to do a 30-year. Then, if you decide later that you want to pay it off in 15 years (or any other amount of time prior to 30 years), you could always make extra payments like Brian Hoyt suggested.
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