@Chris Armstrongwelcome to the site.O-H-I-O

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Many of the closed properties up to 10/06 show price near $216 per sq. ft.Using the RECritic tool (6.25% IO 5/1 ARM loan), I anticipate turning about a $180/month cashflow if I put 20% down.

@Andrew Boucher , if  you're trying to access the Pro forum from the iOS app, Apple does not allow us to put any paid sections of the site on the app.

Any type of DSCR lender should be giving full value after 6 months of ownership...5 years is wild if that's a guideline with lenders you know of.  20 is going to pay off sooner obviously but I have clients many clients taking 40 Year Interest-Only $$ (10 Years I/O, 30 year fixed). 

Hoping to hear from people who know how to structure such a deal, write the note/terms, what risks I need to address, and what terms are likely going to fly.Here are the rough terms I have in mind...Price: $1.5MDP: 20-30% = $300k-$450kMP: 8% IO = $7k-$8kBalloon in 5 years, 12 mo min pre-payThe property currently grosses about $12k per month as an STR.My current loan: $500kMy current payment: $3kGiven these terms, arbitrage would net me close to what I net currently, without the work of maintaining the property and managing it as an STR.

We generally are looking for 70% ltv or lower and 6 month note with I/O payments.

1st UnionEquity Credit Limit: $190,000.00Variable Interest Rate: 5.250%2nd UnionLoan Amount $­­­­­­­­­­­­­­­­­­­­100,000 – I/O HELOCInterest Rate – ­­­­­­4.50% Thanks 

Seller finance the value of the lot lot in second position at 8% IO rate deferred until sale of newly built house. 12 - 18 month note.

Keep in mind there was loads of bad debt, I/O products, people were suuuuuper leveraged, and so on.