Then, each time you make a draw, the actual loan balance goes up and you pay interest based on this new balance. 

They proposed the following with seller financing: Purchase price of $165K$25K down paymentLoan at 7%, amortized over 30 yearsMonthly payment of $875 (actual payment amortized with these #'s would be around $935)Balloon payment for balance in 5-7 years.My question to the BP community is what do you think of these numbers?

Traditional is when one lender is buying out your current balance and giving you a better rate and a cash out is used to pull equity out and results in a higher loan amount.

I had up to $13,000 saved up at the beginning of the year, after a few tries through out previous year in making an offer, I tilted the balance and decided to take that money and invest in "Great Memories" with family and friends, and oh boy we did like rockstar's!

Friend pays private mortgage interest only of 7% on the whole balance or roughly $1200/month.

Well maybe you can figure the rental income to see how it balances out with the upgrades.

The costs of land in relation to sales prices are hard to balance especially when using hard money. 

If you refi the remaining balance of 85% after 5 years you can handle about 2% higher interest with the same monthly payment.

I'm a big believer in Diy, but you need to balance the savings of diy with the cost of holding the property.

as long as you pay on time your score should be good.things that hurt your score:1) lates2) high utilization on credit cards (having a 500 balance on 1K card etc) try to keep it to under 30%3) too few accounts.