CalculateRealEstateROI

Cash Flow

Interest-Only (IO) Period

Loan period during which only interest is paid; principal balance unchanged.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Boosts cash flow short-term but builds no equity until IO ends.

Examples

  • First 3 years IO then 27 years amortizing — common bridge structure.

Common mistakes

  • Relying on IO to make a deal pencil long-term.

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