All Forum Posts by: Ying Tang

Thanks for sharing!! I just bought my first rental property a little over a year ago. It was fully renovated as Phoenix area is so hot and all the flip deals are taken quickly... my friend's company takes care of the rental immediately after the purchase as I don't really want to deal with tenant screening, maintenance, etc... He rents out the property by each room to get a better rent, which is a lot of work... I wish I can have as many units as you one day... Sounds like you need to hire someone at this stage and have a nice vacation :)

Hi everyone! I’m trying to figure out the best mortgage strategy for rental properties. Personally, I typically put down 20–30% and go with a 15-year fixed mortgage since it offers lower rates and I can comfortably cover the monthly payments. However, I know that a 30-year fixed often provides better cash flow due to lower payments, even though the rate is higher. I’ve also heard that some investors choose a 30-year fixed and then pay extra each month to reduce the total interest—almost like mimicking a 15-year fixed—but I’m unclear on how that saves on interest given the rate differences.

So, I’m curious: Is the 30-year fixed more common, or would you stick with the 15-year fixed if you can afford it, especially when you’re only buying 1–2 properties a year? I’d appreciate any insights or experiences you have. Thanks in advance!

@Drago Stanimirovic Thank you, Drago, for the helpful comments! I looked at your profile and you are a lender? I'm wondering how do cash out loan work and do you deal with cash out loans? Thanks a lot!

I was in a similar situation. But I was able to quote around and found a much better deal with another insurance company. I think it is their strategy to increase the premium at some point and hope you do not notice and continute to pay them the higher rate...

@Mya Toohey Hi Mya! I would love to hear more! It sounds promising but my concerns are 1) would the insurance be higher after that? 2) would the flood hit this area again soon, and 3) for properties like this, is it still easy to get loans (for example, I recently looked into a potential flip but the house condition is so bad the seller agent basically says it's cash only as no lender would lend the money).

Hi Dayana! Thanks for sharing your experience. Could you elaborate more on "taxes not reflected the purchase price"? Seems a little odd to me that it is going up after 15 months. Did the assessment go up or down...? For me personally I would not sell it if I were you. 120000-95000-5% agent fee - closing cost - new roof & furnace, seems not a good deal to cash out right now, especially when you still have a positive cash flow. If you refinance at some point, it could still be a decent investment. My two cents.

@Drew Sygit Hi Drew! My answer is zero..and love to hear where to begin. I earned my PhD in Michigan State, worked as a scientist for 5 years in Michigan after that, and have been a law school student for 3 years (did not get the degree yet), and I only recently started my journey in RE. 

@Stephen Morales Hi Stephen, thanks for your valuable input! I’ve noticed that in Phoenix, the 1% rule seems almost unattainable—most properties barely reach 0.5%. For my scenario, it might be partly because I’m on a 15-year fixed mortgage instead of a 30-year one; while the monthly difference is only a few hundred dollars, the 30-year option would cost a lot more in interest during the early years. （Do most investors go with 30 year fixed to achieve maximum cash flow?)

I’ve also heard many investors on BP discussing Ohio and Florida as hot spots for out-of-state deals, so I’ll definitely check those regions out.

I’m naturally more of an introvert, so I prefer texting or emailing over phone calls. I’m also a Ph.D. who is currently in law school, and I’ve learned that verbal agreements over the phone can sometimes lack accountability. Using email helps create a clear paper trail that can protect all parties if any issues arise in the future. Realized that I didn't really answer your question...

@Mason Weiss Hi Mason! Yes I'd love to connect and learn more! Thank you:)