Down payments and Reserves

[Tim ODonald]

Hi! My name is Tim. My wife, Nyree and I are just getting started on our investment journey. We have dabbled some in the past such as buying land, setting a mobile home on it and renting it out. My past consist of all phases of construction so I was able to do all the clearing, excavation, remodel(older mobile home) myself and made pretty good money. We have had 3 parcels of land (small country town) plus the mobile home rental and had to sell all of it do to personal reasons and major home repairs on our own home. So, that's our story in a nut shell. Now, on to my story. We are selling our home and moving to north eastern SC. We are in hope's of walking away with about $65K min. I want to buy in the $120,s for our PR with 20% down and a 15 year note. by the way, I'm 50 years old. So, after all is said and done, we should have about $30K left after purchase, moving and such. Our focus is to also buy a duplex within 6 months of moving, around $100K that needs work. Remembering I do roofing, siding , windows, plumbing, electrical etc.... Although I do know that if a ridge beam is sagging in any way shape or form, STAY AWAY. I realize the bank will want the 20% plus closing cost, so I figure about $30K with appraisal and ball park repairs. Now, the bank typically wants 6 months of reserves- will the bank except the equity I have in my personal residents as sufficient holdings for this? Also, I have read a lot of story's on here and other sites and all are 30 yr notes. I was thinking (originally) that a 15 yr note would be best , if the numbers worked out, to pay it down quicker. Yes or No? Last question, do any of you take the tax benefits that you get every year and pay down on the principal of your investments?

I have done a few flips for other people (As the contractor) and have really done a lot of homework on real estate, such as foreclosures, tax liens  probate on the County register of deeds. I know have a lot to learn and this site seems to be the best one I have found yet. Any and all help would be greatly appreciated!

Thank you, Tim