Is interest only financing the way to go?

[David Goodman]

Hey yall

I'm finally seeing some inventory on the market! A client of mine found a great east Nashville development going up for a good price. 4/4 townhome listed around $735k in a great part of Nashville. Although we love the price, his interest rate is killing the deal. What are some financing strategies that you are using to increase cashflow during this high interest rate environment? As they say, we want to "buy the price - date the rate."

Any ideas?

[Stephanie P.]

Quote from @David Goodman:

Hey yall

I'm finally seeing some inventory on the market! A client of mine found a great east Nashville development going up for a good price. 4/4 townhome listed around $735k in a great part of Nashville. Although we love the price, his interest rate is killing the deal. What are some financing strategies that you are using to increase cashflow during this high interest rate environment? As they say, we want to "buy the price - date the rate."

Any ideas?

The best DSCR cash flow model is the 40 year interest only at the moment. 10 years interest only and then the loan begins the 30 year amortization. They really picked up steam after the debacle that was the first quarter of this year.