Cash on cash question 15 vs. 30 year am.

[James Miller]

So when you guys are running a simple "cash on cash" analysis using the 50% rule for expenses do you use 15yrs or 30 for your mortgage am.? I have some rentals I bought a while back that were cheap enough that I could do 15yrs. Not finding anything close to that so as much as I hate to do it I may have to go 30 !!!!

[Stone Jin]

I use 30, with a 30 you always have the option to pay off early with no prepayment penalty.  The rate is slightly higher.