Might want to factor that in with the estimated turnover you expect in a given year.As far as financing goes, I doubt you will find a lender to do I/O for the first two years. 

The fact that its IO is pretty unique though.

Terms we were seeking: Non-recourse, 70/30 LTV, 30 yr am, 10 yr loan term, 36mth IO, 5% int rate locked   This allowed us to return 85% of member capital back in yr3.

Assume 1% per month I/O and 2-3 points with 20-30% down

I think you calculated that payment on an IO basis.

I'm guessing you have one note at about 6% for about $340K, IO, and a second for about $85K at 8%, amortized for 30 years, due in 15.

Yeah I was given that IO option but Im looking to keep this long terms for my kids etc.

I would flag these posts but don’t see an option for doing so through the iOS app which is my primary tool for using this forum.

````````````````The upfront agreementIn order for the upfront agreement to work, you need to frame it as a very fair, 2 way business agreement.Here is a possible exchange...After the walk through, you're sitting at the kitchen table, looking at both mom and dad the sellers.I fold my hands and I looked very solemn, I try to give them is kind of an expression is possible, as sincere as possible, I have my legal pad, a pen, and a blank letter of intent in front of me.I also have a folder of comps and rental information on the subject property.So here's the upfront agreement...Investor: "So Bob and Susan thanks for the walk through, I just wanted to talk about how I'd like to see our business relationship work.

Android and iOS.