Are you sure you're at 5% on an I/O? 

I have 2 currently, both with 2 different credit unions, and both were no-brainers on low (no) closing costs and lowest rates (still 2.99%-3.99% IO HELOC with 10-yr draw period and 15-yr term).

Fortunately, we were able to stabilize our clients' 12-month hard money loan that had a balloon payment at end of the term with a 12% I/O payment. 

It's cloud-based with apps for Android and iOS, plus it integrates with a whole slew of other software/web applications.

The norm for the majority of rehab lenders is to provide financing for the purchase + cost of repairs + closing costs (and in some cases, a seperate escrow account is established to pay the monthly mortgage payment---usually I/O)---liquidity and/or cash reserves are required to fund the cost of rehab as most lenders operate on a reimbursement/draw basis (they won't advance funds, they will reimburse you after work has been completed/verified).

You'll have to make the IO payments on the loan, and you'll have to front the rehab costs, then get a draw on the loan to get your money back.Do the math for yourself.

In some cases, there are “near dscr” programs to help investors secure a property but can’t quite cash flow off the rip. 40YR 10YR I/O periods help in situations like this if it were a purchase you could qualify just off the i/o payment as far as the lender is concerned.

This has nothing to do with rate, it has to do with the whole deal; rate, pre-pay, I/O,LTV, LTC, etc. 

@Jack Pagliarini Property taxes are definitely a pain at certain price points for DSCR loans in DFW which makes finding the lowest DSCR rates that much more important (and/or considering long term IO products for now). 

They will almost invariably have I/O payments as the property will have no income until complete.