Is it smart to do an interest only loan on a rental or investment property? - interest only investment loan
As a rule, not a pencil. They should ensure that the pension is not just the mortgage, but also cover the normal costs of home ownership. You also need to be sure if the property to be slaughtered vacent 2-3 months per year.
I personally made 25-50%, depending on the number of units.
Sunday, January 10, 2010
Interest Only Investment Loan Is It Smart To Do An Interest Only Loan On A Rental Or Investment Property?
5 comments:
I personally am a big fan of interest only loans. But here's what you ask again a property INV (PS - INV prop IO loans are increasingly difficult to write. How many units are we talking about?)
1. What is the difference in positive cash flow from repayment of a loan classic? Is it worth it? The payments are usually about 10% less than IO Amort conv.
2. How long do you intend to keep the property? See # 4
3. As the market for this type of real estate in this area? By increasing or decreasing?
4. How much is the equity in the property at the beginning. The problem with the E / S is the reduction of capital if the value is reduced. This can be difficult to finance for the way more and more. If you think you have a positive cash flow in late pregnancy and buy a mentality and keep, I IO.
5. This ref. IO usually results in an interest rate higher conv .25% Amort. As the cash-flow work-pos? Is it worth it?
NO, NO, NO! The only time you want to do this is to know if there is no recognition of the mass in the region and plans soon to sell or refinance soon.
No, I think the only way to make even the slightest sense, is in an area of rapid recognition of values and whether it intends to use the property within a relatively short time to sell.
Given the current environment, the values are not considered in most areas and falling in many areas. In addition, commercial property or investment that almost 20% less.
It depends on how much, how the investment and property income is, you have to take into account the monthly cost of ownership.
Hope this helps ...
TaxSaleWealth Release
http://www.taxsalewealth.com
It depends on how much, how the investment and property income is, you have to take into account the monthly cost of ownership.
Hope this helps ...
TaxSaleWealth Release
http://www.taxsalewealth.com
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