Interest always paid on time, and principal was returned with bonus right on schedule.

I had watched it drop $15k just in a 30 day period brining it back down to the price they had paid in 2023 before their rehab.

They are exceedingly rare, thus very expensive, but I believe they represent an excellent long term steady income and store of value.  

From what I have seen, the typical remedy is termination of the contract, refund of the EM deposit and all expenses incurred by the buyer during the failed transaction.

I ran some scenarios using past sales assuming 3% increase in expenses and no increase in rents and by year 9 they are negative cash flow. 

You have used home equity lines of credit to purchase investment rentals and want to know the best way to pay down the HELOCs.Between the two properties you bought, after expenses, you have $250 a month positive cashflow to use.What I like to do is pay down some principal every month with my positive cashflow.I use my extra active income from real estate commissions helping other investors to pay down the principal even more which just frees up that credit for me to use again.I know I can refinance the HELOC debt before it changes to principal and interest as it is just interest only payments as yours are.One difference is the cashflow, I have greater positive cashflow and could make the principal and interest payment in the future with the extra cashflow I already enjoy.I always get HELOCs on my income properties as well after purchasing them to pull out as much of my downpayment as possible.

I do my own property management to keep my expenses low. 

this is the distinct different between being an actual lender like a bank .. and an investor in a fund.. two very separate transactions.. when you lend and receive collateral on the asset you get paid when it pays off or the borrower refinances etc. 

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

400k is so expensive for such a small home.