You have several heavy weights in this thread giving much better advice than I could probably ever hope to.However I have a very simplistic mindset and sometimes look at things different and maybe my thoughts will strike a chord.- Always plan for the S*** Hits the fan scenario- What happens if the owner dies?

I have only shown years 1 - 3 for simplistic purposes, but have model built out for 30 year projections.AssumptionsDownpayment: 20%Closing Costs: 3%Amortization: 30 yrsInt Rate: 5%Material: 8% of gross (plugged)Misc: Added the PMI to roll up here on the P&LVacancy: 10%* I hope this helps and makes sense.

I was far too simplistic in my question, I understand the exposure if you can't sell before the principal kicks in or if appreciation stalls but if rates jump they can readjust the rate inside the IO period?!  

Such archaic, over-simplistic  and primitive.

This may sound simplistic, but you need to get laser focused on exactly what you want so that you can then plan your marketing campaigns.2.

Though I am being overly simplistic, the answer partially lies in your ability to add value and raise net operating income.  

Making this simplistic.

Seems people here make a deal or two and all of a sudden forget how they started and the simplistic questions they had coming in.

Most of it is simplistic.

Yes, it's the right thinking, look at the amortization schedule and you can see where you'd be, simplist way.However, you should use an attroney to draft the note, not sure if that was clear, IF the safe act applies, if it does, there are restrictions on any balloon payment before 2/3 of the balance has been paid (unless that 2/3 has been changed as the regulations are still evolving, I've seen 1/2 as well) an attorney can tell you in your state.