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Updated about 3 years ago on . Most recent reply

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8
Posts
4
Votes
Roy Bias
4
Votes |
8
Posts

First rental property

Roy Bias
Posted

Hello all. I'm a rookie investor and need some advice. I am currently in contract on my first investment property. I was using lending Company A who gave me a 4.2% on a 30 year with 25% down. Company B stated they could give me a 2.99% with the same amount down (25%), same length, and I could borrow more money. After deciding to use Company B and having a pre-approval for the same property, they came back after being in contract and said they could only do a 15 year at 2.99% because the amount I was borrowing (110k with 25% down) was too small to qualify for a 30 year. Should I go back to Company A so that I have more cashflow each month (worried about closing being delayed if I switch) or stick with Company B? I should mention that there is a $205/ month condo feeThanks in advance for the advice. 

Most Popular Reply

User Stats

40
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25
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Ronald Stephenson
  • Investor
  • Wilmington Delaware
25
Votes |
40
Posts
Ronald Stephenson
  • Investor
  • Wilmington Delaware
Replied

Speaking from rental analysis and little practical experience, what your stating leaves me with one main question. 

1.) What is your primary objective with the rental?

If it is a goal to maximize cash flow, then Company A is your answer.

If the goal is to remove the liability of the property, then Company B. 

Of course, all dependent on the numbers of the properties and the earning potential.

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