Purchase 1st Rental Property

[LeeAnna Zepernick]

Fork in the Road-

What is the best strategy to buying our first investment property?

Using a 401k loan:

-pay ourselves back-not bank

-little to no fees

-5 year term

-higher payment than 30 year mortgage

- we would be a “cash buyer” in the transaction

- a lower dollar amount to work with to purchase the property

OR

Conventional Mortgage

-30 year term

- lower payment requirement in case of no occupancy and we have to afford it

- a higher dollar amount to work with to purchase the property

- higher mortgage related fees