People know that what you pay is what you pay is what you get.BTW - one of my lenders looked at 1100 deals since August 17th and did not find a meaningful change in buyer-side commission.

Many people do this and as long as they keep paying the lender nothing happens, but just understand your risks as they may be able to call the loan for whatever reason.

These people are built to value add deals, you would have to look hard for these people in your market and probably pay them top end pricing to get your properties performing amazingly well!  

I just had it on my mind based on some recent discussions. 

     * 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?

Failure to pay rent would be. 

Keep in mind that rates does not fully translate everything.

He sued claiming the stair was defective, even though he told his neighbor he just wasn't paying attention and missed the step.

We’re willing to pay “market price” because the market is valuing the property incorrectly, i.e., too low.  

If it is for liability protection, keep in mind to actually limit your liability means that any loans and insurance for the property need to properly be in the name of the LLC and not your personally.