My Take On Interest Only Loans

[Ivan Esparza]

My perspective is that an Interest only loan would be among the best way for a newbie to start. If you have vacancies or an emergency. 

In addition, you have the ability to stack a small emergency reserve amount early on with a month or 3 of rent (in theory)

 I'm thinking of using an interest-only loan only for a short time to use that money to buy renovate rent refinance and repeat only using that cash flow to renovate the property and switch it to a conventional loan all within a timeframe of 1-3 years. I would also think that you would have to calculate your conventional loan principal and interest first as that's what your gonna be switching to later on and making sure those are in your numbers for the deal.I've seen this strategy talked about on ben mallah's youtube channel. I'm 17 and have listened to the bigger pockets podcast for over a year and thought to ask the bp community what they think about this strategy.