15 or 30 year loan??

[Cassidy Burns]

Hi BP,

I am pulling the trigger on another rental property.  A duplex.  Based on the numbers it looks like it is just going to hit the 2% rule.  Purchasing for $31,500 w/ $1,500 seller credit and potential rent is 400-450$ per unit.   Since interest rates have increased a little since election I am flirting with doing a 15 year loan(4.375%) vs. 30 year loan(5.125%).  Cash flow is about $50 less on the 30 year loan.

Thoughts? 

[JD Martin]

Cash flow should be higher on the 30 year loan on a monthly basis. Is that what you meant? 

I never go 15 on any of my cash-outs. The difference is negligible over time, especially when considered within tax purposes, and you get a whole lot more flexibility.