I was thinking, 120,000 4% interest paid annually lump sum, and 3-5% of equity buildup through duration of holding.

I have seen another post somewhere here on BP where the owner had to occupy the premises for the entire duration of the loan.

You need to find out the duration of the current leases.

If we are too broke to get out of debt and our bond ratings go way down we pay more to roll over the debt that has an average duration of 4 years.Guess what happens then!

If the housing industry moves to shorter duration home loans, like 15 year mortgages, then yes the payments will go up, but not by double.

Or the loan has to be so old that is has reached what is considered "extinction" (usually 20 years beyond the duration of the original loan, so for a 30 year you'd have to be 50 years past loan's original recording date).

If anybody can suggest (or delete) other points I'd be grateful.This is really for 1-4 unit residential properties.Pre-Buy Checklist1) Demographics, ages, percentage of renters to home owners, incomes, type of jobs, type of renters2) Job centers, taxes, services, fiscal solvency, construction, renovation, land use laws, civic pride, gentrification3) Sales and rents trends, cap rates 4) Transportation, freeways, congestion, public5) Vacancy rates6) Property taxes, utilities increases, growth corridors, nearby office construction, replacement costs compare to new construction, 7) Growth in jobs, economic base, and population8) Weather patterns, natural disasters9) Building: architectural styles, materials, purpose built or conversions10) Established rental management companiesPurchase Checklist1) Inspections: property inspector, structural engineer, pest control expert2) seller disclosure statement, 3) statement of income and expenses, sellers IRS Schedule E4) Lot size and value5) Verify code compliance6) deferred maintenance7) space, view, natural light, noise8) Personal property & fixtures9) All co-owners present10) Site boundaries 11) Improvements 12) Clear title13) Deposit conditions14) Condition of property15) Escrow credit for repairs, 16) pre-closing casualty losses 17) Settlement costs18) Dates of closing and possession19) Tenants leases and rental info and their property20) Contingency clauses, environ, hazards21) Insurance22) Read all leases, check for rents levels, concessions (one month free rent etc), who pays utilities, yard care, snow removal, furniture and appliances, duration of leases, security deposits. 23) Ask tenants to confirm their terms of lease.

Austin area has one of the strongest employment market, although there was some over-built especially with MFRs.By the way, here in California, proposition 13 prohibit raising property taxes for the duration of the ownership beyond the rate of inflation.

Regardless of whether it is a short duration stay helping a friend or a family pet that will be with them their entire stay.My pet policy and policy regarding maintenance are spelled out in my lease.

You will find weird things in your contract like it automatically renewing for long durations, the contract applying to owners, heirs and assigns (meaning it applies to future owners, whether they like it or not).