Sounds like they would want a loan that is principal and interest so that they receive their money sooner rather than later.

If equity in the deal is $100k and you are cash flowing $6k per year, then you're making 6% on your money (not including principal pay down and tax benefits)

It has 14 years left on the mortgage at 1.99%.The principal and interest is 1311 per month.

As a general rule of thumb, you can expect to set aside about 50% each month, then deduct your mortgage (principal and interest).

However, commercial lenders will not require the property to be in personal names as they typically lend to entities such as LLCs, corporations, partnerships and trusts with the support of personal guarantees from the principals.

However, even 4% on a 2 million portfolio is 80k per year, plus another 60k or so from principal pay down, plus tax benefits.

You identify the property, get quotes from contractors to make repairs/upgrades, execute, the solidify the loan terms with the purchase + repairs all financed into a lump principal amount.

There is no upfront MI unlike FHA where there is a 1.75%-of-loan amount cost added to the principal or paid in cash).

That way there is always documentation of the amounts paid, clear transparency on how much went to principal and how much went to interest, and what the outstanding balance amount is should you want to pay it off before the term of the loan.

It is great for accounting functions and tax filing purposes, but many have stated it does not take into account principal and interest paid on loans and projects the true performance of an individual property on a report.