15 yr or a 30 yr mortgage???

[William Thomas]

Hey guys,

So I’m buying my first single family rental in about 8 months and I’m debating between a 15 or a 30 yr mortgage. I love the idea of not paying as much money to the bank in interest, but I also love the flexibility of a 30 yr mortgage due to a lower payment (especially because I already have another house in mind as soon as I can get a down payment for that). My payment on a 30 year would be 650 and for a 15 year would be 850. My rent would be 1500, so I would get around 1350 back after paying property manager. Thank you guys in advance for your wisdom and advice!!

[Joe Villeneuve]

Originally posted by @William Thomas:

Hey guys,

So I’m buying my first single family rental in about 8 months and I’m debating between a 15 or a 30 yr mortgage. I love the idea of not paying as much money to the bank in interest, but I also love the flexibility of a 30 yr mortgage due to a lower payment (especially because I already have another house in mind as soon as I can get a down payment for that). My payment on a 30 year would be 650 and for a 15 year would be 850. My rent would be 1500, so I would get around 1350 back after paying property manager. Thank you guys in advance for your wisdom and advice!!

 First, as long as you have positive cash flow, and it appears as though you do, you are NOT the one paying the mortgage...the tenant is.  If it takes them 15 years longer to pay it...so what.  It will bring you higher cash flow each month.  It's not about the total interest that is paid on the mortgage.  It's about who is paying it, and how that impacts your cash flow.