Question on Rental Strategy

[Saurin Pandya]

Hi All,

I bought a second home and looking to convert the current home into a rental property. My current home is on 15 years mortgage and I was thinking if it would be wise to refinance it to 30 years and get mortgage payment down so that I can generate a good cash flow with rental. If I keep at 15 years then the monthly rent may just = current mortgage, barely generating any cash flow/income. Initially, I didn’t care too much about the income as I was more focused on equity and be able fully pay off the property in considerably short duration. However, I am reconsidering if it would be a smart investment strategy? I understand the interest rate would go up at 30 years but it’s still not hurting me since the rents would cover it (and on top generate good monthly income). I am looking for a general opinion on this as I understand ultimately it all depends on my goals, financial stability, market, etc.

Any thoughts?

Thanks,

Saurin.