You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

Remember also that the interest on the loan is taxed at ordinary income rates.So for example lets say you have 100k and were making 8% in the markets - 8k per year and say you are in top bracket, you will pay $1600 in taxes per year or netting 6400.Now lets say you did a loan and were at 5% you are earning $5k per year (actually less because principal is being paid down and some of money goes into essentially a 0% checking account).

What is the drawback?

Moreover, should you refinance,  as the experts are expecting that rates will go down in the next 24-36 months, before the temp buy down is up, if that is the option you took then any of those funds collected from the seller / builder, and held in escrow to subsidize your mortgage payment will be applied as principal curtailment towards your mortgage balance.  

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

That simply means your July 1st payment is paying for the principal/interest for June. 

Smith, Grantor, hereby sales and warrants unto Tom, LLC, a Limited Liability Company created and existing under and by virtue of the laws of Washington, whose principal place of business is 123 Smith Street, and Mike LLC a Limited liability Company created and existing under and by virtue of the laws of the State of Washington, whose principal address is 456 Jones Street, Seattle Washington 12345, Grabtees, as Tenants in Common.

Ask if the seller wants to be the bank, explain the savings in cap gains, and then see if you can structure a lower down payment to go direct and then you can pay the price they want if you adjust the principal and interest in your favor.

Every time you make a mortgage payment, a portion of it goes towards paying off the principal balance of your loan, which increases your equity in the property.

I would love to help out more with your decision, but I'm one of those lame people who signed up and paid lots of money but only got through the first lesson.Most of it is about wholesaling, which I decided was not the route I would like to go.I just finished getting my real estate license and plain on trying out some of his principals then with generating leads.