My take on Interest-only loans...
First a simple question..
Is it true that Interest-only loans are only Commercially backed and more than 750k?
Is Seller-financing the only other way?
My perspective is that an Interest only loan would be among the best way for a newbie to start. If you have vacancies or an emergency. You have the option of paying your mortgage or not.
(Basically the same mindset of getting a 30yr over a 20yr because you can pay it down faster if you want to. But why box yourself in.)
In addition you have the ability to stack a small emergency reserve amount early on with a month or 3 of rent (in theory)
PLUS, you have the ability to Cashflow on any given month as if it was free and clear. Just your taxes, PMI. etc. Then on the next month pay down the mortgage in chunks.
After lets say a 7 year period. Or even before If you wanted. When the loan is coming to an end you can refinance, Starting the loan process again. OR just sell it at a discounted quick sale price to get out from under the first loan.
Is this feasible?
Thanks a bunch BP!