Updated over 9 years ago on . Most recent reply
Balloon mortgage
Hello: My husband and I are looking at buying our third investment property. We have two single family homes rented with positive cash flow - we paid them off (did not know any better). Now looking at multifamily - 16 units, looks good in paper, good cash flow; however, the bank, Wells Fargo, offered us a loan with 25% down, and ballon mortgage due in 10 years with the option of refinancing ( first time we heard of it). We have good income and good credit score. Two local credit union offered loans with 5 year amortization....
Property description: 16 units, listed at 445,000, we estimate 1,000 monthly cash flow.
Please advise!!!