This gives you a better chance to have enough equity to refi five years out. 25 year amortization would likely leave you "upside down" in five years unless interest rates remain at historic lows (not likely - never gamble!).

The gamble is of course I pay the payment out of pocket during turn overs.

It's the engagement in learning that ignites that flame of inspiration and fuels the hunger to be successful and to make something of myself.

You could always hope you'll see some appreciation, but from what I have read doing so is a gamble at best.

Or are private/HML investors willing to take gambles on new investors with no experience?

Lots of cash buying in the area.I have also seen some financing buys that must work out to be pure equity/appreciation gambles in that area.In the event that you DO fine a price point that works you will likely have to compete with a favored cash buyer.

@Eric Gamble We were beat to the deal.

@Mike Dymski  UGH I saw this play a few times.. over the decadesHey we will buy it because in 2 to 3 years this will happen.now I think everyone knows that I am an appreciation guy... but that mind set is really gambling in my mind.. maybe not quite as bad with these low dollar rents.. but I have seen guys already in our market get stressed thinking 1800 rents and the build cost to either build new or reposition rents need to go to 2200 and that did not happen.. thereby caused stress to the partnership and in a few instance lenders getting tough as the loans are not meeting DCR's..  

Depending on the rental market there raising the rents could be a gamble.

It is a gamble but it's my passion.