The repayment terms for a 401k participant loan are equal monthly/quarterly payments of principal and interest (typically prime plus 1%) over a 5 year term (longer if used to acquire your principal residence).Please note that if you take a full $50,000 and then pay back the loan, you can't take another $50,000 until 12 months after the first loan was fully paid back.Per the loan offset rules that went into effect with the 2018 Tax and Job Act: if you leave your job and the loan is current at the time you leave your job but then the loan goes into default because you left your job, you will have until your tax return deadline (including any timely filed extension) to make the loan current by depositing the outstanding balance into an IRA (and thereby avoid the taxes and penalties that would otherwise apply).

Principal (not principle) paydown generally is a sign you're de-levering investments that are sub-optimal save the leverage. 

$ (100.00) Principal Balance $ 157,000.00 Investment $ 70,000.00 Equity $ 103,000.00 Over Paying PMT $ (727.09) Management Fee $ - Net $ 494.58 Yearly Net Income $ 5,934.90 Taxes Month $ (204.33) Yearly Net Operating Income $ 3,482.95 Vacancy Rate 8.33% NOI with Vacancy $ 3,192.71 Cash on Cash (Are you getting a good ROI) great is 15% 4.98% 1% Rule (Is it a good investment generally?)

Wealth is created with with equity, de-leveraging principal, appreciation and taxes.  

In addition, you may want to have your lender write a letter that indicates you are a principal/partner.Abel 

The repayment terms for a 401k participant loan are equal monthly/quarterly payments of principal and interest (typically prime plus 1%) over a 5 year term (longer if used to acquire your principal residence).Please note that if you take a full $50,000 and then pay back the loan, you can't take another $50,000 until 12 months after the first loan was fully paid back.Per the loan offset rules that went into effect with the 2018 Tax and Job Act: if you leave your job and the loan is current at the time you leave your job but then the loan goes into default because you left your job, you will have until your tax return deadline (including any timely filed extension) to make the loan current by depositing the outstanding balance into an IRA (and thereby avoid the taxes and penalties that would otherwise apply).4) As an alternative to taking the loan, you could even purchase the investment property directly using funds in your Solo 401k (assuming you are self-employed & select a Solo 401k plan provider which allows you to invest in real estate).

The repayment terms for a 401k participant loan are equal monthly/quarterly payments of principal and interest (typically prime plus 1%) over a 5 year term (longer if used to acquire your principal residence).Please note that if you take a full $50,000 and then pay back the loan, you can't take another $50,000 until 12 months after the first loan was fully paid back.Per the loan offset rules that went into effect with the 2018 Tax and Job Act: if you leave your job and the loan is current at the time you leave your job but then the loan goes into default because you left your job, you will have until your tax return deadline (including any timely filed extension) to make the loan current by depositing the outstanding balance into an IRA (and thereby avoid the taxes and penalties that would otherwise apply).

Therefore, you need to know the maximum the rate could increase at each point, when you will start paying Principal, and how those changes in the monthly payment would effect your cash flow or overall deal.

In our market anytime we try to do a 15 year note there is very little cash flow too.I would find out what their goals are, meaning do they need all of the principal back in the 15 years, or are they more looking for a safe return on their equity?

An agency relationship is a fiduciary relationship, where one person (called the “principal”) allows an agent to act on his or her behalf.