Numbers are coming from the T12 - there is a large margin between NOI and the IO payments.

Many are buying down the rate to floor pricing and getting the buy down paid back in less than a year with the I/O payment savings.  

@Steven Goldman, I'm being quoted 6% with 3 points on a DSCR 10-year IO/20-year P&I. 

@Chad McMahan I've been noticing that some parts of Arizona will see DSCR constraints on SFRs as rates hit the 6s and 7s (thinking of PHX metro though not Sedona) but some cool new long term IO products have prevented some purchase fall out for investors recently because some DSCR lenders will simply calculate it based on the initial IO payment.  

Apps are crucial to what I do on the road, or even in office (evernote/IFTTT/Drive all on desktop) I even wrote a blog about it:http://www.biggerpockets.com/renewsblog/2013/11/25/6-killer-ios-apps-will-revolutionize-investing-business/

What happens to cash flow if the 10yr fixed rate loan with 5 yrs IO goes amortizing?

FL, NY, MD, CA, VA, NJ,Horizon Bank, Kalamazoo MIHuntington MI 75% LTV 5 yr IO product available.

In general, ARM loans will have lower rates and I/O options will take on a higher rate, compared to the flat fixed 30 year term loan.Be sure to explore your options thoroughly and work with a broker/lender who knows how to help you with your short and long term goals.Cheers!

2 on a lot, SFR, 6 year old townhouse, 2 on a lot, SFRThe other three were two SFR and another townhouse, but I decided to sell them all retail.Of the properties I kept, my financing looks like this;2 on a lot - seller financed2 on a lot - subject to the seller's loanstownhouse - private loan, but it is worth $215K, I owe $100K and I get $1,595 in rent (that is more of an equity capture play than a cash flow move - I can hold it for a year, then 1031 into something better)SFR -  hard money loan at 9.9%, 5 years I/O.

Or they have to get an IO bridge loan to cover the rehab and then get more permeant capital once complete and they can show a steady TTM run rate.