Then, if you can trend over time you'll want to see where the "path of progress" is going/moving and attempt to buy in that path of progress to gain some appreciation in the future.

The only difference is the seller remains on title until we have enough equity to refinance or sell.3: Typically we don’t agree to balloons.

You typically need up to two years of stable employment before a bank will loan to you.

Hey, if you get married you'll be able to shield an extra $250k in capital gains!!

I am planning to get into the TN real estate market as my first investment and am looking for some information.In particular: Areas to steer clear of, property management fees, typical cosmetic rehab costs, etc.My strategy is to put large down payments on 2 properties (relative to housing prices) to help pay for my living in NY while still gaining appreciation in a growing real estate market.

For example, let's say you are guaranteed a 7% pref and the property delivers exactly that, but then sells with a capital gain. 

No capital gains! 

@Edgar Duarte Selling now under the primary residence exclusion avoids capital gains taxes, allowing you to reinvest the $500K equity in diversified assets like index funds or additional rental properties.

Is an IRA subject to capital gains tax?

So your capital gain when you sell this property will be calculate against your tax basis and not against your mortgage as many investors expect.