Hi,
I have a deal with cap rate around 8.5% with very good tenants in atlanta. I am willing to put 20% down and requires the financing of about 250 to 300 thousand dollars. The best financing deal I have got so far is
3 year balloon (20 year table)
Points: 1/2
Rate: prime(6.25) + 1 = 7.25%
5 year balloon (20 year table)
Points: 1/2
Rate: prime(6.25) + 1.5 = 7.75%
I some how think that I can do lot beter than this with 20% down. I would rather have 20 year fixed traditional mortgage if I can find the better deal.
If let me know what you guys think.