Interest only loans are horrible UNLESS you are absolutely confident you have a big value add upside in the future.Often I see investors massage debt with properties to make numbers work when instead they should not buy the property at all or negotiate a way different pricing when purchasing and underwriting.Interest only loans, short term fixed debt then goes to market are time bombs with tenants with long term fixed leases.Now if I am doing value add with big upside then of course interest only can work in a lot of cases because I do not care much about cash flow going in but the equity multiple later on.

Maybe a co-working space or professional like a builder/remodeler, real estate brokerage, mortgage broker, therapist, chiropractor, massage therapy, dentist, doctor etc.

I am a Swedish investor and I´m about to invest/buy a house or two in Cleveland Ohio to lease.

They get used when people first move in, but after that they just get used to massage sore muscles with the jets.  

I feel like I am running these numbers very conservatively but wanted to see what people think about the numbers below 215k purchase price15% down 1436 piti2400 rent (>1%)5 vacancy 10 pm5000 year reserves2800 year maintI’m very close to positive cash flow on this but I wanted to see if this is just a deal that needs some massaging or if there is a flaw in the way it’s calculated.

It actually has another whole side to the house which used to be a beauty/massage parlor which we plan to renovate into a 2br/2b as well but that will take a bit more time. 

The sad reality is that you'll only get a low offer past a listing agent if they take it seriously, which they will once you massage them and get their guard down.

LOL  That's not new.In this low savings return environment,  it's a great time to hone, massage and expand our private lender network. 

There are some things you can do to massage the structure like have a large loan premium which is paid at refi or sale of asset

During COVID, I've gotta get my OTB picks in extra early at the Swedish greyhound parks.