Pre-construction properties can be appealing for appreciation, especially in high-demand areas, but they’re usually not strong for immediate cash flow since there are often HOA fees, carrying costs, and delays before you can rent.

Essentially they broker a lender paid temporary rate buydown, then refinance in 6 months before (or within the first year) before the one year temporary buydown ends.

@Don Konipol My most recent one was for several months I kept getting told we’ve both just started new jobs and won’t get paid for 2 weeks.

Any other closing costs would be third party related like title/escrow fees (any co. you like) and prepaids for property taxes & insurance.

Quote from @Michael Santeusanio: I see many first-time investors run into the same financing pitfalls:Not getting pre-qualified before making offersUnderestimating rehab costsOverestimating ARVChoosing the wrong loan term for their exit strategyForgetting about holding costsWhat’s one financing mistake you wish you could go back and avoid? 

I am about to put my first STR into service. I spent a lot of time getting it set up. Moving and assembling furniture, buying all of the necessary items. It was a blank slate when I bought it, but only needed to be pa...

Recording under those circumstances would cloud the title of a property in pre-foreclosure, not a worthwhile action and very dangerous.

We’ve already paid him $12,000, and this has turned into a total nightmare.

Pre-Covid, the spread between the 30-year fixed rate mortgage and the 10-year has been in a tight band of 1.5% to 2%.

Understand on a refi it is not really a "down payment", but rather a loan to value. so, at 75% on a single family investment property rate/term refi I would be around 6.5% today with no points/no pre-pay penalty, at around 6.125% at 60% loan to value with no points/no pre-payment penalty.