Pay Only Intrest To Make Cash Flow Greater

Can you refinance your exsisting loan making intrest only paymetns then rent out to a tennant making your cash flow greater?

Comments(4)

  • ray_higdon8th September, 2004

    You sure can but if you are holding for long term you are playing a shell game. Paying down the principal will allow you to pull out more equity later.

  • dlitedan8th September, 2004

    true, but even if you get a interest only loan you dont have to pay interest only. if you can save 200 dollars a month and take that savings and use it to invest somwhere else than its a good idea I think. plus you should plan on not holding the property forever, short term, say 1 to 5 years.

  • ray_higdon8th September, 2004

    That's a pretty broad statement to make,

    "you should plan on not holding the property forever, short term, say 1 to 5 years"

    Just think if you hang onto just a few properties until you pay them off....cashflow, appreciation, equity, yummy. Now, I'm not saying to hold everything forever, just rebuking the idea of not holding anything for longer than 5 years.

  • myfrogger8th September, 2004

    Every property in every area needs to be analyzed for the best appropriet exit strategy. To say that holding a property for 1-5 years or forever is like me telling you that you should drive a honda civic hybrid. What is good for one property isn't good for another.

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