First Rental: Pay off in 5 or 30 year am?
Just went under contract on a duplex. Purchase price 78k (will likely renegotiate once I get inside and see what capex and repairs are needed). Current rents are 450 each side. I have 2 options for financing: 25% down at 5.4% plus some monthly repair expenses puts me cashflowing somewhere between 250-300 a month. My question: I can also get a 5 year ARM at 3.8%. Should I go this route and just pay the property off by year 5? I was considering paying the entire rent amount towards the mortgage anyway which would have me paid off in 7 years. Should I pay for 30 years and cash flow (leaving more money for other deals) or sacrifice current cash flow in order to pay off in 5-7 and have greater cash flow later and a paid for property?