15yr vs 30yr mortgage

[Brian Decker]

I was just pre-approved for my first investment mortgage.  I plan on buying a single family rental property in Philadelphia, PA for around 225000, 4 beds and 2 bath.  This property will rent for at least 1800 per month, possibly 2000.  I have read and understand the 1% rule and the 50% rule as well.  I have a full time job and make good money.  It would be nice to have cash flow, but I do not need cash flow at this time.  I plan to buy and hold rental properties and would like to have the tenants pay off the properties in as little time as possible.  Considering this scenario, does it make sense to use a 15yr mortgage with about $200 monthly cash flow or a 30yr mortgage with about $700 per month in cash flow.

[Andrew B.]

If you have a 30 year mortgage and decide to pay it off in 15, you can make extra principle payments.
If you have a 15 year and decide you want the extra cash flow, you're only option is to refinance.
Based solely on flexibility, I'd always pick the 30 year.