And, while the investor is at it, they may as well do a cash out refinance, or at least they want to know what those numbers look like.Here is what that financing might look like, along with pros/cons.From left to right: No prepayment penalty, 3 year prepayment penalty, no prepayment penalty. 

Imagine if tenants could break their leases without penalty if they didn't like how a landlord communicated?

What about prepayment penalties?

How do you feel about a $700k purchase price with a non owner occupied 4plex DSCR loan 3yr prepayment penalty, 10yr interest only 30yr fixed after$560k loan amount (20% down)7.750 par rate with no costs. monthly payment $3,616.66Or pay $22,295 in closing costs and get a 6.375% Monthly payment of $2,975The monthly payment difference between the two is $641.66And when you take $22,295 in closing costs and divide it by $641.66 that will give you 34.5 months (2.89 yrs) to break even if my math is correctHow do you guys feel about taking a lil less than 3 years to break even on $22,295And the seller is giving me $15,500 in seller concessions  thank you everybody for your help!!

If they then want to terminate the lease I would do so penalty free.

- Are there any penalties for early termination?

I was fine many where not though and had to recapture and pay penalty.

@Ben Magee, In my state (PA) a tenant may break a lease WITH NO PENALTY if a unit is uninhabitable for an extended period and the landlord has been unable/unwilling to correct it.

Those that act now and integrate privacy into their operations will thrive in this new era, while those that lag behind risk not just penalties but long-term market relevance.Conclusion: Privacy as a Value-Add for Real EstateAs the world moves toward a privacy-first economy, real estate companies must recognize that data privacy isn’t just about compliance—it’s about trust.

But ensure it is legit, if you are audited, and you didn't rightfully take the position, it's not just the tax - you'll be hit with late payment penalties, substantial underpayment penalties, interest, and potentially fraud related penalties if it can be determined that you knew you didn't meet the qualifications but claimed it anyways.