FHA/PMI refi options

[Ben Cochran]

Sorry if this post is in the wrong section.

I have a FHA/PMI refi question.

I own a side by side duplex. After 5 years still owe $285k.

Im refinancing to remove the PMI and also to allow me to use FHA again with a 3.5% down payment for next multi family unit purchase.

Currently the mortgage is $2k. Rents are $1600 per side ($3200) a month. $1200 cash flow after mortgage is paid.

Refi options are 30 years @ 4.75% (now considered an investment property) with a new payment of $1900. ($1300 monthly cash flow)

Or 15 years @ 3.99% with a new payment of $2600 month. (Monthly Cash flows $600)

Is it better to have the shorter loan period with less monthly cash flow or the longer term loan but cash flowing more per month and pay that profit onto the principal each year.

I’m 44 and my long term goal is to have at least 5 multi unit properties paid for and cash flowing by the age of 60.

Looking for a strategy.

Thanks

[Ben Cochran]

@Jaron Walling yes you’re 100% right. I’m not discounting other expenses like maintenance etc. I was just providing some round numbers for general analysis.

I paid $310k in 2015 and it appraised for $405k last week.

Not looking to pull out any cash, just remove PMI and FHA.