Purchasing a duplex...15 or 30 year loan?

[Angela MIller]

Purchasing a duplex...can’t decide if should go with 15 years or 30 years. 15 years = less income but done in 15 years so more goes into principal; 30 years = more income but very little goes into principal. Which one would you do? Also, can somebody explain how I can use equity line of credit on home to make downpayment on another house? Typical fees in that and whether or not worth it? So my thinking right now is go for 15 years, use equity line of credit to use as downpayment for next property...or do 30 years, and use extra income to buy more property. Which is more logical?

[JM Payne]

Go for the longer term.  You can always pay it off faster, but you're giving yourself a bigger safety cushion in exchange for (about) half a point of interest. 

As for equity...you have to HAVE equity in order to get an equity line, so you would either have to wait for tenants to pay down note (works on either 15 or 30 yr term,) or you have to get an appraisal showing an increased property value (also works on either note.)  I hope that helps.  Have fun and good luck!

- JM