When Will you Say Interest Only Payments Makes Sense on a Rental?

[Kingsley Addo]

I have property I procured with hard money which is approaching the due time for me to refinance into a conventional loan. I got a quote from a company we decided to move forward with. This will be a DSCR loan. However, it appears we underestimated the annual taxes, so I am being told that after factoring in the higher taxes the property will not meet the DSCR requirements. Lender tells me my best option is to do a 10 year interest only with a 30 year term. I am new to RE investment and I am not sure if going the 10 year interest only is a good choice. I'm seeking advise on what my best options are? Thank you in advance

[Robin Simon]

The IO options are pretty good right now, not much of an additional cost and even with a higher rate, it often becomes a lower overall monthly payment!

Everything depends, but I think the main reason "not" to pursue it would be if the property is relatively low value and already comfortably cash flowing at full am