Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 2 years ago on . Most recent reply

User Stats

5
Posts
1
Votes
Kyle Hey
  • Investor
  • Dillsburg, PA
1
Votes |
5
Posts

Financing Question for new(ish) investor

Kyle Hey
  • Investor
  • Dillsburg, PA
Posted

Hello, 

In 2015 I bought a duplex and lived in one side while renting the other. We recently moved out and into a SFH, and kept the duplex as a solid, cash flowing rental. This property was bought in our name and is in a 15 year mortgage (about 7 left) at a low interest rate. Now that the dust has settled, my wife and I are looking to invest some of the extra cash we saved while living in the duplex in another rental property.

My question is what financing would you recommend. I like the terms of a "in my name" mortgage , rather than a commercial loan through an LLC, so that I can maximize cash flow and keep as much cash liquid as possible for the time being. I understand that there are some benefits to using commercial loans, however I have never been given an example of what that would look like. I need some help deciding between a conventional mortgage or a commercial loan. It would be great to hear more from those who have done both and what they would recommend for a second purchase.

 I am a little leery about possibly tying up more cash for a down payment and a higher monthly payment in a 20-25 year commercial loan. Also, the rapid change in interest rates has me a little nervous about adjustable rate terms. 

So, any advice for someone looking to buy their second investment home? Please feel free to post a link to another forum, youtube video, etc that could help if you don't want to write a lengthy response. 

Thanks in advance. 

  • Kyle Hey
  • Loading replies...