Before 2008, lenders often approved ARMs based on borrowers ability to pay the initial lower interest rates.

A good tenant is someone who works hard to have more choices in life.

Regardless of your approach, forming an LLC is the smartest choice for protecting yourself from potential liability caused by the numerous tenants you will be hosting in your property.

Have you successfully borrowed at this price level?

It seems like the worst choice. 

Knowing how much you still owe will help figure out the real cost of losing that low rate.Also, when it comes to borrowing the additional $170K, it’s key to know what kind of returns you’re expecting to make on that money.

When these situations would arise, I would get through them by just understanding that I had no choice.

My question is, since we may not need to borrow anything to finance this, will the mortgage payment be affected? 

If the property appraises for $300k, you can borrow up to $300k.

@Cyndi Lees,It sounds like you have a good problem with a number of choices.