Financing Question for new(ish) investor
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.