Updated about 16 years ago on . Most recent reply
Length of Loans for Investment Properties
This is my first post, so I hope I am posting this in the correct place.
I have purchased 3 SFH in the past 10 months. I have purchased these homes with using a 90 day loan option from my bank, and then getting a home equity loan on the property once it is deeded in my name.
The home equity loan pays off the 90 day loan, and then I have a 10 year home equity loan. This 10 year loan has an obivious higher payment reducing my NOI on the rental properties.
For those that have been investing for some time, would you rather have a higher NOI on a monthly basis, or would you rather have the loan paid off sooner?
The 3 properties I have bought have been for the following prices:
1. $35,000 = Rented for $650 a month
2. $19,500 = Rented for $400 a month
3. $21,650 = Should rent for $525 a month