Updated almost 10 years ago on . Most recent reply
Looking for some advice on a 5/20 rehab loan
Hey everyone, I'm just getting started on this new journey and I've identified what seems to be a nice first investment property. I've been using (and loving!) the rental tool here on BP to analyze different properties. If all things work out, I would buy, rehab, and rent it out. My question is, do any of you have guidance with using a 5/20 loan? I've never heard of this option.
From what I understand, I finance for 5 years with payments amortized over 20 years with 10% down. At the end of 5 years, I must pay the balance or refinance. Can you share with me some of your thoughts and experiences using this method?