Title: Calculate Harriet's $3M Business Sale: Interest-Only Mortgages for $37.5K Passive Income? Tagline: $37,500/Year Passive Income Stream? See How Interest-Only Mortgages Can Optimize Your Business Exit Problem: Harriet, a 62-year-old entrepreneur, is selling her successful marketing agency for $5 million. After taxes and fees on the business sale, she estimates $3 million net proceeds. She wants to generate a consistent income stream to supplement her retirement, but is wary of tying up all her capital in traditional investments that may be subject to market volatility or high fees. Her financial advisor suggested exploring interest-only mortgages as a potential strategy, but she's unsure how to evaluate the costs and potential benefits. Harriet also has $50,000 in student loan debt from her MBA. Solution: Using the Interest-Only Mortgage Calculator, Harriet can determine the feasibility of purchasing investment properties and covering the interest payments solely from rental income. By strategically investing a portion of her sale proceeds, she avoids immediately paying capital gains taxes on the entire $3 million, while also generating immediate income. The calculator allows her to experiment with different loan amounts, interest rates, and investment property scenarios to find the optimal balance between cash flow and risk. This lets her compare it to a simpler investment portfolio of bonds or dividend stocks. We will also calculate if student loan forgiveness is a better plan. ROI: By taking out a $1.5 million interest-only mortgage at 5% on a well-selected property, and using the remaining $1.5 million to buy the property generating $6,250 per month ($75,000 annually) in gross rent before property taxes, insurance, and maintenance, Harriet can pay the $6,250 monthly interest payment. After an estimated $37,500 in property taxes, insurance and maintenance on the new property, she is left with $37,500 annual cash flow from the new property. The Interest-Only Mortgage Calculator accurately presents these cashflows. Over ten years she projects to generate $375,000 in net cashflow. Description: Plan your exit strategy efficiently. This calculator helps you determine the viability of using an interest-only mortgage to leverage proceeds from the sale of your business into a lucrative passive income stream. Avoid capital gains tax traps and maximize your financial flexibility. Category: Lead Gen