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

In my case, a crappy little $500.00 claim means it's simply not economical (unless the filling body has a s-e-r-i-o-u-s grudge and money to burn) to pursue.

Ill pay IO for 5 years then balloon in 5 when I sell.

Capex $3.7MM, Agency financing 66% LTV @4.05% with 18 months IO.

I didnt ask about if I closed it prior to ten years, I dont plan to, unless I run into a DTI issue as you mentioned @Jason PotrzebaThe only thing I didnt understand when I talked to a mortgage loan officer is how an IO line could have a lower monthly cost than a P&I line.

As for this deal, there are about 10 GPs and projected equity multipler is 2.3x, 5 year fixed rate with Fannie Mea at 5.6%, 3 year IO and 1-2% pre payment penalty.

So the question I have for the minds in this thread: why haven't we read about a lot of these 10 year i/o, 20 year amortization, ARMs blowing up in people's faces, leading to foreclosure?

I'm currently charging $10,000 down payment, 1.9 points and 15% I/O.  

Currently only available for iOS they are working on an Android release, I believe.

Mostly I o property management for my properties and my clients, so I don't have to drive around anymore....I've answered your question.