15 yr mortgage vs. 30 yr mortgage

[Account Closed]

When getting a conventional mortgage for an investment property with value adds, would it be more beneficial to start with a 15 year mortgage and then refinance 6-12 months later with a 30 year? I hear a lot about starting with private money lenders and hard money lenders and then refinancing to long term conventional loan but what is most advantageous when starting with conventional?

Thanks!

[Brandon K.]

I would recommend a 30 yr fixed when just starting out. The cashflow on a 30 yr note will be much higher than a 15 yr. This is beneficial because you can use this extra cashflow to reinvest in another property to create a snowball effect until you max out with Fannie Mae. Interest rates are so low right now that you should be buying as much as you can afford to create cashflow.