This means that the income from the property can pay its expenses and generate a pre-tax profit.DSCR formula: Add up the expenses tied to the property (monthly taxes, monthly insurance, monthly homeowners association dues if applies, monthly principal & interest payment.

Smith, RA - Principal Architect at Architect Owl PLLC (Licensed in NY & CT)

For the properties you've acquired at $350K each with a $50K down payment and seller financing at 6%, you've already built equity equivalent to your down payments plus any principal payments made since closing.

With 30 year loans you can still pre-pay principal if you want and wait to refinance into a 15 or shorter when the time is right and rates are lower.

Principal reduction isn’t included.

Long term Rental, Principal Paydown, Cash flow and AppreciationLessons learned?

Recasting generally means making a lump sum payment to principal, which is an effective way to reduce your monthly payments. 

For individual taxpayers selling their principal residence, the IRS does provide an exemption up to $250,000 of the capital gains for single filers and up to $500,000 for married couples filing jointly.

I check the SEC, FINRA, ratings websites for inside information on the principals in the company.

We optioned it for 5.5 million and each annual payment is 100% goes to principal so no interest carry at all.