Here's how it works:If their deposit is $1,500, they can either choose to pay the SD in full or elect to take out what is essentially a loan with Rhino Insurance and only pay $25 per month ($20 goes to Rhino and the remaining $5 goes to the PM company) toward their $1,500 SD.

A couple of thoughts that might help.I recast a loan at a point where I had paid enough extra to allow recast (I think it was $5k over).

It’s things like that which make this decision more than just a legal one-it’s about how organized you can be.Something else to consider: lenders often want you to personally guarantee loans, even if the property is in an LLC.

 $24,000 loan from the government at 5% or $1,200 per year for 15 years or $18,000 savings.  

We're in a small town so we ask our bank loan officer who is involved in the community for a CPA reference.

I know if I were to send an operating agreement to a lender that reads "LP member will receive return of their capital and 20% annualized return" they would not approve the loan.

Our agent is not an expert on this type of deal but suggested a short loan term of 3 or 4 years and a balloon payment and written up by a lawyer. 

You will need to make sure you meet all the lender's requirements if you are planning to buy with a loan. 2.

Not all loan officers are created equal so if you call up a branch, you are likely to get assigned someone inexperienced. 

If those don’t align, vacation rental or investment property loans might be better options.