The best finance structure for an investment property can vary depending on various factors such as your financial situation, investment goals, risk tolerance, and market conditions. However, here are some common finance structures that investors often consider for investment properties:

1. 1. Traditional Mortgage: This is the most common finance structure for investment properties. It involves obtaining a mortgage loan from a bank or lender to finance the purchase of the property. Investors typically make a down payment (usually 20% or more) and repay the loan over a fixed term with interest. Traditional mortgages offer competitive interest rates and terms, making them an attractive option for many investors.

1. 1. Interest-Only Loan: With an interest-only loan, borrowers only pay the interest on the loan for a specified period (usually 5-10 years), after which they begin paying both principal and interest. This structure can help investors maximize cash flow in the short term by reducing monthly payments, but it may result in higher payments later on.

1. 1. Adjustable-Rate Mortgage (ARM): An ARM offers a fixed interest rate for an initial period (typically 5, 7, or 10 years), after which the rate adjusts annually based on market conditions. ARMs often have lower initial interest rates than fixed-rate mortgages, making them attractive to investors who plan to sell or refinance the property before the rate adjusts.

1. 1. Commercial Loan: Commercial loans are designed specifically for investment properties such as multifamily buildings, office buildings, or retail spaces. These loans typically have higher interest rates and shorter terms than residential mortgages but may offer higher loan amounts and more flexible terms.

1. 1. Cash Purchase: Some investors choose to purchase investment properties outright with cash instead of obtaining financing. This eliminates the need to pay interest on a loan and may provide greater flexibility and negotiating power when purchasing properties. However, it requires a significant upfront investment and ties up capital that could be used for other investments.

1. 1. Seller Financing: In seller financing arrangements, the seller acts as the lender and finances part or all of the purchase price of the property. This can be an attractive option for investors who have difficulty obtaining traditional financing or who want more flexible terms. Seller financing arrangements are negotiated directly between the buyer and seller and can vary widely in terms.

1. 1. Joint Venture or Partnership: Investors can pool their resources with others to purchase investment properties through joint ventures or partnerships. This allows investors to leverage each other’s capital, expertise, and resources to acquire larger or more profitable properties than they could on their own. Joint ventures and partnerships involve sharing ownership, profits, and risks with other investors.