That would give me low monthly payments while leaving me plenty of reserves. 

I found a seller who is behind on payments and is willing to sell "subject to" us taking over their conventional loan.

To my disappointment I was denied a loan of $170,000 from quicken due to high debt to income ratio ( I was over excited and failed to do my due diligence) I didn't think to add in the new payment into my calculations.....oops, But with that nice lesson learned I now know what needs to be done in order to get either 50-80k on a heloc. so my question is when the lender calculates the dti on the heloc do they use the interest only payment or principle & interest.

As far as I can tell, the benefits with the 30 year are:Interest is deductibleDue to inflation, the cash that Im using to pay the monthly payment in 20 years won't have the same buying power as the monthly payment does today.  

The benefit is that the payments are taken from your check pre tax which helps and you pay yourself the interest rather than the escrow company.

There is no sense in payment more then you should be a property and it is worth an ask.

I realize it's not how your supposed to do it (idk legality) but has anyone bought a second home to get the 5% down payment instead of the 20% down payment it costs for an investment property?

Hi Andrew,The bank will need a 12 month lease before they can count any rental payments as income.

I have some heloc available and I will outline that information below.Purchase Price: $575,000Revenue: $100,183Expense: $33,355NOI: $39,113Seller Willing to Finance with 30% Down: $172,500HELOC Availability: $220,000Appraised 6/2016: $575,0002013-2016: $200,000 in Renovation, proven with Tax ReturnI was hoping to use the HELOC for a down payment.

In addition, I would update the listing to mention that you're open to owner finance at a very reasonable terms such as 6-7% interest rate with 20% down payment, no credit no problem and hope that would spurn more interest.