A few years ago when I bought investment properties I took out 15-year loans in order to retire the debt faster, and to get about a 1/2% break in the interest rate. Of course cash flow suffers on these investments since so much of the monthly payments goes to principle.
Now, however, banks rake me over the coals when I try to get a loan, because “You don’t have enough cash flow”. My great balance sheet doesn’t matter to them, or my better interest rate on existing loans. (Nor, BTW, does proof of living below one’s income). They just want wage slaves, or last year’s favorable Form 1040, or commissioned salesmen coming off of a good year. Very frustrating.
