Interest only seller financing

[Marco Morkous]

I think we all know benefits of interest only financing as being lower payments higher cash flow. A seller has offered interest only financing for 5 years on a multifamily property.

Here’s a concern I have. With unsureness of the market and lack of equity due to not paying down the loan. What are the major risks and how would I reduce them?

[Joshua Janus]

If you have the ability to refinance in the future and can take advantage of the large cash flow now, this deal might be worth it.