15 or 30 yr Mortgage

[Cody Maldonado]

Hello,

I am in the process of purchasing a rental property. I only have a couple of properties in my portfolio and have always used a conventional 30 year. When looking at the numbers, there was a small difference in monthly payment on a 15 year (about $120). The property will still cashflow and rate terms are slightly better. I am curious if anyone has thoughts or advice on going 15 year over 30 year? 

Thank you in advance for any advice!

[Ke Nan Wang]

That's roughly a $51k loan amount, which is pretty small so I'm wondering what the rent price point is. 

In the end, the true answers to your question is do you want to retire early and go do something else or do you want to keep scaling your business. 

Without knowing much about you, speaking only in general terms, if you want #1 as your end goal, you should aim to pay off your loan as fast as you can and then go fishing, hunting or traveling the world. You can live pretty much carefree, but you aren't gonna be famous with a book deal, or a yacht. But if you want to slow ball the business and become a real estate tycoon, you usually want to stretch out your loan as long as possible and have as much cashflow as possible.