Updated almost 7 years ago on . Most recent reply
Interest only or repayment?
Hi, I am new to RE investing and doing my due diligence and learning loads. What do you think of interest only loans? Which do you prefer, interest only or repayment?
Most Popular Reply
It really depends on your business plan for the property. Many loans with Fannie Mae are interest only for 2 years and then you start paying principal and this gives you some breathing room during the value-add process. Many fix and flip loans are interest only as well.