How are you navigating this slower period with your current investments?

If you keep the house over the same period, its value will hopefully track or outpace inflation and your heirs can inherit it.

Investors will sometimes choose the second option / 40 year term because during the 10 year interest only period, the mortgage payments are lower compared to a 30 year fixed so more rent is going into the investor's pocket.

@Christopher Morris November of 2023 was one of the highest rate periods we have had in a long time.

Typically though as part of this cancellation they give you a time period to fix the issue.

(Note that this is the typical arrangement for Airbnb rentals and other temporary rental-type properties.)Rental property used on a transient basis is depreciated over a 39-year period, not over 27.5-years as is the case with longer-term residential rental property (LTR). 

Truth be told, most will refinance their 5/7/10 year IO loan before it ever reaches the adjustable rate period.

Managing Property during extended periods of vacancy: FREEI think the rate is better than a few PMs I talked years before. 

It’s wise to have a financial buffer for periods without tenants.

Your tenant rents from you based on a rental period (ie. a yearly lease).