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 thanks for the advice guys!!

I get all the debt arguments, the "math", whatever logic is used, etc.I still subscribe to no debt or limited debt.

You don't get to pick them.The math should be fairly elementary. 

Most cases it’s going to require a 3 year prepayment penalty unless you take the 5 year for the lower rate.In most cases even though people hate points it makes sense if you run the math to check the recouperation.

I am an engineer so the math for calculating what is due based on sqft and occupancy isn't a challenge.

The rents are on the lower side, but I am also not looking to raise them significantly as the best thing about these properties IMO are the very long-term tenants.When I do the math, I'd have a lower monthly payment and pay less interest over time even at that premium price versus a lower price and lower rates in the next year or so, but I likely wouldn't be able to sell any of the properties at that value for quite a while.Is there anything I should be thinking about that I am not?

The HELOC has a 8.5-9.0% rate on it, so we'll do the math on the penalties for dipping into the 401K for the down payment vs the HELOC>

For quick math one month vacancy is almost 2k lost income, re-leasing expenses 2k and there are always at least 2k worth of work (sometimes just upgrades we choose to do).

Now I am still getting 15- 25% nets, MATH is the only thing that mattersAll the best 

I'll DM you. not sure of your math there  if the loan pays off in 5 months the return apr wise is quite a bit higher