How long is too long

to hang onto an IO loan. Im in the process of getting a HELOC and still trying to figure out if I should go with a fixed or IO

The plan is to buy and flip but most developers down here require a year or two of residensey which is fine because of the appreciation of property here in Orlando.

Is two or three yrs too long for a for a Io loan.

Thanks guys


Hey Mr. Investor,

Really how long your IO loan period should be is depending on your time for investment in the property. If you are into flipping the property, then maybe you would want to get a hard money loan. But if you intend to sell or refinance for cash out within 12-24 months from date of purchase, then this is what you would want to do.

Get a loan that has a 2/28 ARM Interest Only, No Pre-Payment Penalty, and allows for 6 Month Seasoning for Refinance.

What this allows you to do is;

1–Allows the property to be acquired and kept at a low monthly payment

2–It gives the property time to appreciate in value

3–The 6 month Seasoning allows you to refinance without hassle if you properties happen to skyrocket in real appraisal value

4–And in all honesty if you are an investor, your properties shouldn’t take more than 12-24 months to make a profit or a move on them either way (unless its a long term investment)

So thats how long it should take and one of the ways you can do it.
Happy Investing,

J. Bellamy