* House is a 2699 sq/ft Single Family Residence| 3 beds, 3 bathroom | Built in 1956 | NO HOA     * There is a chance I could pay only interests so I can start saving some cash for the incoming maintenance and annual payment equivalent to the 12 monthly payments (~$5,029.77 per year during the balloon period)The advantages I can identify in this deal for me are:* Lower interest compared with traditional loans* Lower down payment compared with the ones compared for traditional loans* House is technically ready to be rented (waiting for the inspection) * Forecast - 3 yr growth (appreciation) is expected to be 8.1 % (Bigger Pockets)The disadvantages I can identify: * I am still vulnerable to foreclosure if sellers don't make mortgage payments to the bank.* Refinancing issues at the end of the Balloon Payment?

I would look for a bunch of Sub To Deals with 2-3% interest rates ...... then rent out for cash flow and huge equity build up when rates are really low (check out amortization schedules and compare 2-3% vs 6-7% with the same balance and length of time - check out the principal portion each month - the lower the rate the higher amount goes to principal PLUS better cash flow).

If your rate is lower than what you can get by investing, taking account for risk, then pay the minimum.

If it sits vacant for months at a time, the data model gets recalibrated and they'll tell you to lower your rent calibrations, but maybe what it needs is someone to tell you "you know what?

How does this impact cash flow compared to states with lower tax burdens?

I'm in Northern Nevada and there are vast areas where you can get away in the mountains with a lower wildfire risk.

List of all items remodeled and how much they cost and the comps in the area (some appraisers come from out of the area and you know best what the comps are and numbers are).Other option: if the numbers turn to be tight and you cannot refi, I would think about selling it lower and taking less on the deal to get your hands washed from the project.

What are some things I can do after going under contract to lower closing fees?

The higher the risk, and the lower the DESIRABILITY, the greater the cap rate.First  we need to lower the $85k “net” to probably $60k to account for property management.  

Purchase at a much lower than even market price or get aeller concessions2.