Does It Make Sense To Buy Rentals With 15 Year Mortgages? Jim Berry Shares His Experience (Ep 510)
Rental Income Podcast With Dan Lane
Rental Income Podcast
4.9 • 805 Ratings
🗓️ 25 February 2025
⏱️ 22 minutes
🧾️ Download transcript
Summary
The downside to this strategy is that you have a larger mortgage payment and less cash flow today. The upside is that you build property equity much faster than you would with a 30-year mortgage, and in 15 years, you own your property free and clear.
On this episode, Jim shares how he was able to take the equity from one of his properties and buy three properties, and in the process, tripled his cash flow.
We also discuss some of the risks of a 15-year mortgage, how much Jim puts down on purchases, and how he has found the properties he purchased.
https://rentalincomepodcast.com/episode510
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Transcript
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| 0:00.0 | inspiring interviews with today's top landlords this is the rental income podcast and now dan lane jim |
| 0:10.1 | let's start off by talking about your strategy can you tell me your strategy for buying rentals |
| 0:15.6 | yeah absolutely so we my wife and i got started buying one rental property a year. And our strategy |
| 0:25.5 | was to put it on 15-year loans and really take advantage of paying down the loan balances with |
| 0:32.1 | the rent every month. The downside to a 15-year mortgage is that you're going to have less |
| 0:37.4 | cash flow today because you've got a bigger mortgage payment. The downside to a 15-year mortgage is that you're going to have less cash flow today |
| 0:38.5 | because you've got a bigger mortgage payment. The upside to a 15-year mortgage is that you're |
| 0:44.5 | gaining equity in the property very quickly. You can always tap into that equity to continue to buy |
| 0:50.5 | more rental properties. Or if you don't do anything, in 15 years, you're going to have |
| 0:55.5 | a free and clear property that's going to be producing a ton of cash flow. |
| 0:59.8 | On the podcast today, we're going to learn more about what Jim's doing and see if it makes sense |
| 1:05.0 | to buy properties with the 15-year mortgage. |
| 1:07.8 | Joining us on the podcast today from Nashville is Jim Berry. We'll take a quick break |
| 1:13.1 | to thank our sponsors. We'll come right back and we'll talk to Jim. Investing in rental properties |
| 1:18.3 | can be complicated, but it doesn't have to be. My friends at Mid-South Homebuyers sell completely |
| 1:24.8 | rehab turnkey properties in both Memphis and Little Rock, |
| 1:28.8 | and they've been doing it for 23 years. All their properties come totally rehab. They put on a new |
| 1:34.9 | roof, new kitchen, new bath, new plumbing, new electric. Everything is brand new. They also have |
| 1:41.4 | a tenant that's moved in before you close, so you get cash flow on day one. |
| 1:47.0 | Mid-South homebuyers also continues to manage the property for you after closing. |
| 1:51.9 | It couldn't be easier. Everything is 100% done for you. |
| 1:56.5 | All their properties also come with a couple of guarantees. |
... |
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