Which financing would you rather choose?

[Andrey Y.]

If you needed to finance $100,000 for an investment, which would you choose:

a) A conventional loan at 4.25-4.50% for 30 years

b) A loan from a family member for 0% interest, but have to pay $10,000-$15,000 back per year.

Now, it seems great to have a 0% interest loan, but do the numbers make sense? if rental income is $1500 or so per month, after expenses, it make actually be a negative cash flow. In the conventional loan, it would cash flow positive ~$400.

Hmm.. decisions.