ready to buy 3rd property, 15 or 30 year?

[Rachel Degennaro]

So, I did the housing hack, buy a duplex, live in one, rent the other out, and it's going really well so far, I'm super happy I finally took the plunge.

I got an insane deal on the duplex, although it did need some work, nothing too major. Between savings and a small hard loan (that I just paid off) I was able to buy, free and clear. So now I own, get paid to own and don't owe the bank anything.

I'm ready to buy again, this time I was thinking of a SFH, I have a bit in savings, not enough to buy another house outright, so I will probably go the bank loan route.

My question is, I see a lot of investors talking about putting the least amount of money down and doing the traditional 30 year loan to increase your monthly cash flow and free up cash to do it again, and I get that, because I am trying to collect more than a few houses, my problem with that is, even though you are putting a few extra bucks in your pocket every month, in the long run you are paying considerably more to take out such a long loan vs a 15 year. 

So wouldn't it be smarter to pay it off quicker and for less interest and own it outright then to drag it out for so long and ultimately pay more over the life of the loan, or am I missing a key factor in this?

Sorry if it seems like a dumb question, I am still new and do not know any other real estate investors/landlords personally so I am just trying to find the best route.

I still work full time and plan to until I can afford to quit, also I wouldn't mind making the next property my primary residence if it got me a better rate and I can then rent my current house out..