Wednesday, May 30, 2007
15 or 30
i posted a while back about whether it was better to go with a 15 or 30 year mortgage on our house. in the end, for flexibility, we opted for the 30 year. this made me think about whether it would be better to go with a 15 or 30 year note on an investment property. now, generally speaking, i think rents on investment properties probably allow you to take in some passive income if you're on a 30 year note, but it's probably much more difficult to do on a 15. but, of course, you get the benefit of depreciation, so it's probably doable. my question is this -- is it better to build equity in an investment property (say a small house or condo that likely appreciates slower than your primary residence) quickly with a 15 year note and possibly take on some investment losses until the mortgage is paid off, or take some gains while paying off the mortgage and go with a 30 year note?