Go for the 18 month I/O loan if you can get it especially since this is your first deal.  

That is why apartment financing terms are so favorable (long-term fixed low rates, 30 year amortization, non-recourse, I/O periods, favorable LTVs, assumable, supplemental loans).7 - In cyclical markets, you do not need high leverage to achieve outpaced returns.  

IO I am seeking advice or suggestions on two rental properties I own.

Interest-only means exactly what it sounds like - you make only interest payments for a certain amount of time (generally 10 years on a typical IO mortgage), and then you pay principal and interest for the remainder of the loan (usually there is no balloon).  

Gary Kuang I just wrote a long post and it didn't go through via iOS app.

Then have the seller hold the balance as a 2nd mortgage, again shoot for IO.

Your aunt bought them an expensive house, rented it to them cheap (paying the interest on an IO loan is a LONG ways from being profitable) and now they're bailing.

We have two choices, borrow the money from an HML or partner up using a joint venture agreement.HML terms:10% down @ 12% I/O with a 12 month Stop and a 2% origination fee due at closing.Total cash out of pocket for the hard money loan:$9K downpayment$2K Closing costs$1.6K Origination$25K for the renovations$.4K for utilities$1K for insurance and Property Taxes$5K for 6 months of debt service= $44K out of pocketNote: That we now only have $16K remaining of our original $60K.

Without seeing what you are seeing (the answers are in the loan documents you were given) it is hard to determine if you have a I/O 10 YR ARM or I/O 10 YR Balloon (both loan types can be amortized to a 30 yr schedule).

@Heidi WilsonWe disabled the Pro exclusive forum in our iOS app to comply with Apple's terms of service.