For many real estate investors, the purpose of an LTR loan is to finance a property they plan to manage and rent out for many years to come. Various qualification factors and loan terms are set to provide this loan while allowing for competitively low interest rates, making it one of the best options for financing a long term rental property. For these reasons, there is likely a prepayment penalty if you decide to pay off the loan, typically within the first five years of having it. It’s one factor that can help you determine if this loan fits your overall investment goals and timeline.