Financing - what is best?

[Dan Scott]

I'm buying my first investment property and looking for a little help. I'm in a debate with my partner on whether we should take out a 20 or 30 year term and if putting down 25% or 30% makes more sense. Their argument is that we will "save" around $50,000 if we do the 20 year term, and put 30% down, as it will pay off the loan faster even though the monthly payment is $200 higher. My argument is that we're not paying out loan, the renters are. I'd rather have the additional cash flow and only put down 25% so we have more money to put back in the business to keep buying more properties. I'm sure their are arguments on both sides, but any advice on which direction we should go would be great. Our strategy is buy and hold. Thanks

[Thomas S.]

You should consider whether you want to be partnering with him or not. He does not understand investing principals and is viewing your investment like a personal home. If you can not get him around to your thinking you need to seriously consider if he is a good fit for you as a investor.

He, like many others on here, do not have a clue how investing in income properties works. Each to their own but if you want to make maximum returns you will need to get him to learn how investing really works.