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Updated over 8 years ago,

User Stats

75
Posts
27
Votes
Taylor Witt
  • Rental Property Investor
  • Alexandria, MN
27
Votes |
75
Posts

16 unit analysis with 25yr or 15yr amortization?

Taylor Witt
  • Rental Property Investor
  • Alexandria, MN
Posted

My long term investing goal is to continue to move up into larger apartment complexes which I will eventually buy and hold.  This would be my first apartment complex and I want to get opinions on whether I should amortize over 15 (less cash flow but less money tied up) or 25 years (more cash flow and more money tied up) knowing my goals.  It appears my net profit would roughly be the same amount if I sold after 4 years...

Attached is the sames analysis of the apartment building with the 2 different financing terms.

15 year amortization

25 year amortization

https://www.biggerpockets.com/calculators/shared/4...

https://www.biggerpockets.com/calculators/shared/4...

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