.- at year 7 if value appreciated a lot, can i do a HELOC on it and use that HELOC to pay off the balloon - probably not due to lien being secondary etc on helocYes on the HELOC, but it would probably be easier just to refi and pay off the seller, and cash out more money too.Hope that helps and good luck!

The right market for you depends on whether you prioritize cash flow (Augusta, Columbia) or long-term appreciation (Greenville, Huntsville).

Purchase price: $425,000 Cash invested: $5,000 ell after just 6 months of owning.

Even if the rental has a decent cash flow with additional flood insurance, we're still not sure we want to take on that risk as we are out-of-state investors (planning to move back to KY in the future, but not now) and we don't like that it will potentially bring down the perceived value when we try to sell it in the future.The seller has never lived there and has not provided any information on if it has flooded before or not. 

You won’t get the metrics like the pay down or the returns on the second note this way but you can get the accurate cash flow.

Purchase price: $425,000 Cash invested: $5,000 Helped my past client out of a difficult situation.

@Mark Toweya couple things - from the seller's perspective, it means the seller doesn't have to wait the full 30 years to get the proceeds, and from the buyer's perspective, hopefully in that 5 years appreciation and maybe some updates have increased the value such that when you refinance you don't have to bring any additional cash.  

Diversified Cash Flow Fund:InvestNextThis sounds a little bit too good to be true.

Ohio Cash Flow is my TK provider.

Detroit seems popular for cash flow!