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Updated over 9 years ago on . Most recent reply

User Stats

36
Posts
4
Votes
Bryan Blancke
  • Engineer
  • Troy, MI
4
Votes |
36
Posts

30yr vs 15yr fixed conventional mortgages

Bryan Blancke
  • Engineer
  • Troy, MI
Posted

I plan to build a portfolio in cities near Royal Oak Michigan for cash flow and equity with a buy and hold strategy focused on small multifamily units. I work as an engineer with a stable salary and I am planning to finance my first four deals with conventional bank loans. My first thought is to go with 30 year fixed mortgages, but would it be unwise to not consider a 15 year fixed mortgage? I wonder if I could even cash flow with a 15 year mortgage in this area and if it would work with my overall business strategy. I would be trading higher cash flow for equity, which I don't think would be worth it starting out. I expect the higher cash flow to more important than building more equity to leverage for future deals. I don't need the cash flow for my living expenses and plan to use it for reinvesting in my properties or into new properties. 

Most Popular Reply

User Stats

18
Posts
5
Votes
Thomas Burns
  • Nassau County, NY
5
Votes |
18
Posts
Thomas Burns
  • Nassau County, NY
Replied

Get the 30 and pay it like a 15.

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