Prepayment penalties- usually 1-5 year terms.

When vetting a hard money lender, ask about their interest rates, loan terms, and fees (origination, prepayment penalties, etc.).

This means sizeable monthly payments, but if utilizing with Value Add you can pay off the loan without a pre payment penalty at any time.Hope this helps!

But they do fund.. you will pay almost double for their money by the time you pay rate points junk fee's penalties when you go long etc..

This is a business purpose loan and will have a prepayment penalty and possibly cost a bit more than conventional financing.

Check with your CPA if cost seg makes sense before proceedingRISK - If the IRS disallows your cost seg, the risk will be the taxes previously due and any penalties. 

Is there a pre-payment penalty?

I recently opened a HELOC and I recall it's at prime for the first year (7.5% currently), and I only paid minimal closing costs.PML or HML I would expect rates >10%, plus points, possible prepayment penalties etc.

When they see you post and not pay taxes, they'll come after you...and probably hit you with all kinds of cease and desist as well as back tax bills and penalties and interest and that won't be a fun place to be. 

Worse than negative cash flow is buying out of negative cash flow at current rates.Note I put forth certain effort to keep my leverage high   Until the recent rent hikes, it was fairly simple to refinance every few years and keep the leverage without large penalty from rate differential.