Locking in a lower interest term loan will also force you to get the principal down as opposed to just making minimum card payments every month that allow the balance to keep growing.

If a single partner pays the mortgage personally, the payment must be treated as a contribution to the partnership, as specified in the partnership agreement.

     * House is a 2699 sq/ft Single Family Residence| 3 beds, 3 bathroom | Built in 1956 | NO HOA     * There is a chance I could pay only interests so I can start saving some cash for the incoming maintenance and annual payment equivalent to the 12 monthly payments (~$5,029.77 per year during the balloon period)The advantages I can identify in this deal for me are:* Lower interest compared with traditional loans* Lower down payment compared with the ones compared for traditional loans* House is technically ready to be rented (waiting for the inspection) * Forecast - 3 yr growth (appreciation) is expected to be 8.1 % (Bigger Pockets)The disadvantages I can identify: * I am still vulnerable to foreclosure if sellers don't make mortgage payments to the bank.* Refinancing issues at the end of the Balloon Payment?

@Nate Jenks - @Andrew Postell did a great job clarifying the big challenge you'd run into pulling cash out with such a low down payment. 

While down payments and principal payments aren't deductible, inspection fees and other acquisition costs can be added to the property’s basis for depreciation.

HI Vince, as long as you are vacating your current primary home and moving into a new primary that is acceptable, but just make sure you obtain a 12 month lease in order to use the rental income to offset your mortgage payment and not getting hit twice for your current mortgage and new mortgage.

(Down Payment Assitance Program).

Be careful about using your current home equity as a down payment on another property.

The letter also stated that the current landlord should have begun collecting payments toward to the security deposit upon receipt of the letter they provided me, which they did not. 

Once you get into 3bedrooms and up Furnished Finder won't be as reliable as a channel to find tenants.