Question from a newbie - Posted by CharleyM

Posted by ken in sc on November 03, 2005 at 06:45:06:

I like to have the lowest fixed rate interest payment that I can get. That way, durind times of high vacany or other cash flow worries, I can still make my payments. Therefore, a 30 year fixed rate mortgage is best to me. If the property can afford a 15 year mortgage, I still say get the 30 year lower payment. You can always pay more. But if you get the 15 year payment, the option to pay less goes away. If you could get an interest only payment at a fixed rate forever, I would get that. But you can’t. All interest only loan I see are only interest only for a specific period. Then, you must lock in the rate later and it might be higher than todays rate. So again, I say get the 30 year fixed, save what needs to be saved for repairs, vacacies, and reserves, and put the rest toward extra principle or new purchases.


Question from a newbie - Posted by CharleyM

Posted by CharleyM on November 03, 2005 at 06:27:28:

This question is for any experienced investor, from a newbie. I have now purchased two investment properties,sold one and currently selling the other. My question is: what type of mortgage would you obtain for more than one house at a time? In order to have a positive cash flow my payments need to be lower than my potential rent rates. Is an interest only loan an option? I have excellent credit, so financing shouldn’t be an issue, right? Anyone out there with multiple properties. Please let me know the smartest way to finance multiple houses at once. Thanks in advance.


Re: Question from a newbie - Posted by Mike (Seattle WA)

Posted by Mike (Seattle WA) on November 03, 2005 at 13:01:40:

How long to do intend to hold these properties? If shorter term, get ARM type loans for them. If you are only going to hold them for 1 year or so, consider an OptionArm if you can get a decent rate. The neg-am payment on this can be treated like a second mortgage without points.

Re: Question from a newbie - Posted by arlanj

Posted by arlanj on November 03, 2005 at 08:13:56:

I just use lines of credit, and construction loans, from a local bank.

Re: Question from a newbie - Posted by SteveA (FL)

Posted by SteveA (FL) on November 03, 2005 at 07:34:19:

I’ve got 3 mortgages currently, all traditional. One on my house, one on a rental, one on a rehab. My lender says you can have up to 10 mortgages with them. One drawback is they can’t do loans to LLC’s. I’ve also heard recently the investor loan downpayments have been lowered by some banks. That’s good news.