Best Mortgage For A Rent To Own
I recently finshing rehabbing a property. My strategy is to re-finance at 90% LTV and hold the property for a few years. I have a couple that would like to do a rent to own. My question is are there certain types of mortgages that are better than others since ideally I will not have the property for more than 5 years?
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ARMs are probably better than 30-year fixed for your situation. Look at 3/1 and 5/1 ARM products and figure out which is best for your cash flow over your expected holding period.
My suggestion is an ARM with an interest only payment. That way your payment can be low. You can get like a 5 Year Interest Only ARM. Interest Only payments will maximize your cash flow. I can definitely help you with this if you would like.