Purchased home for $120,000 in 2010, invested about $60K in rehab over the years.Current MV ~ $255,000.Mortgage liability: $91,000 @ 3.65% (30 year fixed)HELOC balance: 25,500 @ 5.2%  (floating rate)Paid off $20,000 of HELOC w/ 15 mos 0% interest credit card - current balance is $19,200.  

There are also typically prepayment penalties involved, which is only a drawback if you are not planning to hold for the long-term (not a concern for most DSCR borrowers).Typically the loans are structured with 30-year terms and a fixed interest rate, but there are options to have the rate float after a few years and/or to make interest-only payments for first 10 years.Really, the ideal loan product for the investor that is just starting out and doesn't have W2/DTI or is in scaling mode from about 5-50 properties (less than 5 typically good for conventional, more than 50 you move into institutional-level financing)

.* Vacation Chalet - negative cash flow, slightly under water (due to HELOC I used to float low income properties).

We always ensure that we have enough capital in the business to float the project's holding costs and any budget overages that we may run into.

If they can't budget their money properly enough to float rent for a handful of days between paychecks, they're probably bound to miss it soon enough.

In the upper right corner of this page, (when you are logged in) under the yellow Podcast banner, is a link that says "My Keyword Alerts".

This has, IMO, allowed prices to float higher than 8 times pretax average income, and taxes here are no joke with average of 30-35%, plus 23% VAT, plus gas is 7$ a gallon plus, etc...

It also keeps borrowers from hedging one lender against another, locking and floating.

I have a 25 year commercial loan that is fixed for 7 years and floats for the remainder.

Seems like those are pretty popular markets amongst the BP community. 60k might be a bit optimistic but there are lots of properties floating around the marketplace in the 70k-80k range.