BE ETHICAL.

@Carloz Gil There are principles from two books that come to mind:Rich Dad, Poor Dad, by Robert KiosakiYour primary residence (unless you do a house hack, a lot of information about that on this website) is NOT an asset.

Doing the latter here could get you an ethics violation.Dont do these things if you want to stay in business. 

If property management is a secondary thought, you run the risk having a company not acting ethically, legally or properly licensed operating your property. 

So just rough, back of the envelop math, you don't want your principle and interest payment on your mortgage to be more than 50% of the market rents for the property.

If you meant to say 12 year loan with a balloon at the end, then you will most likely make monthly mortgage payments along the way which would include interest and principle pay down.You can have the private money lender wire the money directly to the title company and you can sign the promissory note that is created for the loan at the title company along with the closing docs.

@Suki Su It really depends on the HML, Ive seen % of the total or different % by PP and Rehab costs.As for application fees, interest only vs principle, other layovers, its all negotiable and differs by lenders.

Wish someone had exposed me to some of these principles at 17 instead of 37!

These are professionals with additional training and a stricter code of ethics.

Without knowing the Tax Rates for the area of Interest, I would use $500 / Month for Taxes, and about $125 / Month for Insurance, and another $100 for MI, leaving you about $1275 for P & I (Principle & Interest).