Hey Darren,That's a one time 8% up-front fee, period (i.e. no additional costs, ever), and the loan rates and terms will be established by each lender (which are not established at this point).

So you pull out your equity, your mortgage payment might increase from $2700.And that refinance is still debt, meaning you won't qualify for as large of a loan on your next house.If you want to buy a stepping-stone property now to prepare you for a better home later, you should focus on buying something to sell it.

-Much easier paying cash instead of dealing with the loan process.- Financing seems much riskier, since you have to make the mortgage payments regardless if you have a tenant or not if you finance, but if you own not having a tenant would stink, but you still are getting the appreciation and the risk of going negative cash flow is MUCH less.Thanks -I am really interested in hearing different viewpoints.

Now, some basic comments.Lenders LOVE interest only loans.  

@Steven Catudal You can now do 5%-10% down on a conventional loan for a duplex now.

With a 0% loan for the batteries payback is a still 10 years but  we will see how it looks after a year.

You won't typically get to choose your appraiser if you're getting a hard money loan so that's not unusual.

Can you qualify for an FHA loan? 

He says that he's using an exposure limit loan to buy and resale properties to retail buyers.

Investors who's loans are about to mature?