Anyone use these?  I have a 4 plex that I am considering changing over, and it would open up alot of oppurtunities for me in my current neck of the woods where things are slightly overpriced compared to thier cash flow.

Perhaps not a bad way to go.  I recently re-financed my home with a hybrid 30-yr. loan that is interest only for the first 10 years.

I don't have additional properties as you, though we both find ourselves victims of the AMT.  Towards that extent, I make any and all effort to reduce my taxable income, particularly as I'm in elligable to deduct IRA contributions, and a ROTH is a flat-out no-go.

If I were you, I would check with my accountant as well as a financial advisor; in fact, I arranged a three-way telecon several years ago so that both were aware of my situation, both understood my interest.

Believe me, get both of these perspectives from you advisors--better yet, also get them thinking together as to what will help you the most.

Quoted: Anyone use these?  I have a 4 plex that I am considering changing over, and it would open up alot of oppurtunities for me in my current neck of the woods where things are slightly overpriced compared to thier cash flow.

DO NOT GET AN ARM (adjustable rate mortage)

Arms look like they are the work of the .


Interest only is all that I am looking at just to maximize cashflow, and in 30 years, I can re-fi or sell the property if I choose to do so.

Anyone use these? I have a 4 plex that I am considering changing over, and it would open up alot of oppurtunities for me in my current neck of the woods where things are slightly overpriced compared to thier cash flow.

I take this to mean you have rental income, and to maximize your income you want to lower payments using an interest-only mortgage?

Well I think you know the risk, but here goes anyway: you WILL have to pay a much higher mortgage in 4-5 years (when the principle pmts kick in, that's how most of those loans work).  So, my next questions are:

* Will rents rise enough to cover the payments increase in 4-5 years?  
* Or, if your strategy is to flip, are you confident the housing market will continue to be strong in your area, and you are confident you can sell it before the larger payments kick in?  
* Or, will the potential additional cash flow you make from the new investments be enough to offset the higher payments in 4-5 years?

It comes down to your investment opportunities and risk tolerance.  Only you can answer that!

Quoted: Arms look like they are the work of the . Interest only is all that I am looking at just to maximize cashflow, and in 30 years, I can re-fi or sell the property if I choose to do so.

Please tell me who is lending 30 year interest only loans on real estate that are not ARMS; that is some money I want to borrow.  

Quoted: Quoted: Arms look like they are the work of the . Interest only is all that I am looking at just to maximize cashflow, and in 30 years, I can re-fi or sell the property if I choose to do so. Please tell me who is lending 30 year interest only loans on real estate that are not ARMS; that is some money I want to borrow.

You know, I think the more I look into this, the more that I think I may have been getting a song and dance from the outfit that was going to do the mortgage, they just kept pushing the payments being lower and made zero mention of the 5 years or so before they rates started going up.

Quoted: Quoted: Arms look like they are the work of the . Interest only is all that I am looking at just to maximize cashflow, and in 30 years, I can re-fi or sell the property if I choose to do so. Please tell me who is lending 30 year interest only loans on real estate that are not ARMS; that is some money I want to borrow.

Exactly, I laughed when I saw the comment that ARM's are the work of the devil but yet youre interested in an IO.  IMHO there is nothing wrong with ARM's or IO's if they fit into your particular situation. For examply a 5-7 year arm for an individual in the military that buys and sells a new house every four years.  That individual will take advantage of the lower rate and never see the adjustment.  But if your taking a IO just to buy a house that you cannot afford and then betting that the house will appreciate at current levels to provide you with equity, well that is up to you but too risky for me.  For others not familiar with the mortgage game, the reason that ARM's are pushed so much is not because the broker gets paid more or anything like that but because they are usually the best option for most people.  When a broker can see on your credit report that you've refinanced on average every 2-3 years during the past 10 years and you currently have lots of credit card debt and kids in school, odds are you will refi again in 2-3 years regardless of rates but because you are living beyond your means.  If you are going to refi in 2-3 years anyways then you are an idiot for taking a 30 fixed loan.  I find it funny that there are millions of people in the US with different financial situations yet they all want the same loan (30 yr fixed).
Do you know any of the specifics on the IO.  How much can it go up the first year?  What index is it based off of?  How long do you honestly think you will have that loan?