Prepayment penalties- usually 1-5 year terms.

Is there a pre-payment penalty?

@David MartoyanGreat question—it’s a challenging time for BRRRR, but there are still opportunities with the right approach.Prepayment Penalties: I plan to keep my BRRRRs for 5 years or more.

It also puts your agent and lender in a tough spot where it could be a perceived "fraud for profit" and they could lose their license and face time/penalties if they knowingly cooperate.

For "seller" now there is an incentive for lower cash-flow, and a penalty for improvement of a higher cash-flow. 

Code § 1715z–19 - Equity skimming penalty"shall be fined not more than $500,000, imprisoned not more than 5 years, or both."

Yet, when I initiated a withdrawal, I was met with a complex set of terms, penalties, and withholding conditions that were never clearly explained beforehand.

They were nice and didn't charge me the 10% penalty though.       

Code § 1715z–19 - Equity skimming penalty"shall be fined not more than $500,000, imprisoned not more than 5 years, or both."

If you're over 72, you may have to take Required Minimum Distributions (RMDs) out of your retirement accounts by the end of the year - or pay stiff IRS penalties.