FYI  roof.io charges $2/tenant  (www dot roof. dot io/pricing/)

. $70 monthly (IO) so as long as you can get $70 more for the larger of the two, you will be fine.Also, the larger house needs less repairs according to your figures and is newer (better resale value down the road & possible less capital expenses).In the end, it is a personal decision you must decide and above are only my observations.

My I/O loan is for 10 years.

You then made the choice to use the LOC IO with a ARM?

You say its 6% down, 7% interest amortized for 20 years or 9%/7%IO.

With the prevailance of 105% - 125% IOs and Cash Outs I think the jist of her question is right.

However whether or not IO is good for you depends entirely on what your plans are for the property.

Too many people have used IO loans to buy more house than they can afford and so when they get into financial trouble down the road and maybe try to refinance their way out of it, they find they don't have enough equity to do so.

I mean the right price, NOT putting a large down stroke, or an I/O loan, or an adjustable mortgage.

Let's say the land is worth $ 4,000,000 so LTV on note is 50%.The note is a 5 YR Balloon, I/O due in 5 YRS the amount is for $ 2,000,000 with the note rate at 9% interest only for 5 years.Interest payments collected monthy would be $ 15,000 with $ 900,000 collected over 60 months and $ 2,000,000 due at month 60.What could I expect if I wanted to sell this note?