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Updated about 10 years ago on . Most recent reply

User Stats

272
Posts
193
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Brian Tome
  • Attorney
  • Worton, MD
193
Votes |
272
Posts

How long should I finance a property?

Brian Tome
  • Attorney
  • Worton, MD
Posted

I am looking at my first multi-unit property and using the deal analyzer to determine my ROI and CAP rate. However, the numbers vary widely depending on which amortization period I use.

I am interested to know what amortization period others have chosen and why.

Thanks in advance.

  • Brian Tome
  • Most Popular Reply

    User Stats

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    569
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    Nathan Emmert
    • Investor
    • San Ramon, CA
    569
    Votes |
    1,316
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    Nathan Emmert
    • Investor
    • San Ramon, CA
    Replied

    Given the ultra low interest rates of today... and generally a very small difference in rates between 15 and 30 year terms, generally speaking 30 years is a no brainer if it's available and fixed.  It's a HUGE inflation protection measure and maximizes your cash flow (which allows you to generate further cash flow).

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