refinance at a 15 year loan

[Kelly R.]

I have two properties my primary worth 135000 and i owe 86500 . My second property is a rental , rented steadily , I owe 46500. Its worth 72,000. I have a equity line of credit of 50000 open to use. Would it be worth it to pay off the rent house with the line of credit, and then refinance with a 15 year loan and have just one mortgage?

[Curt Smith]

Cash flow today and in an (unlikely) down turn and droipping rent is paramount.  Please please do not consider a 15 yr for either a primary or especially a rental!!!!!   You will be sadeled with higher debt payments and reduce cash flow.

Please (also) please don't listen least for now, the pay off your mortgage types!!!!!!

At least until you own a bunch of rentals. During your "build" phase you need safty via DSCSR (google) >>> 1.5 ideally >1.7 and >>$300 / mo cash flow ideally >$400.

What if theres a down turn and you need to drop rent?

I suggest you put todays cash flow and personly free cash flow into the next rentals down payment and buy buy buy with BRRRR 80% debt until you have your nut monthly free cash flow. ONLY then consider paying off mortgages.

My practice that got me to quiting my day job in 7 years was BRRRR and keeping full debt on, and REFIing out 1st across the portfolio . My wife and I love investment property debt and plan to die with rentals with debt. As long as we are living off the cash flow, appreciation, rent raises all is good! :>