At 7% or even 5% over many years that annuity payment to the lender evaporates in real terms.

Thus, my objective is to have a diversified portfolio across all asset classes (stocks, real estate, bonds, whole life, variable annuity, etc.).

If you go forward I'd consider it more of an annuity for however long your parents live there rather than a good RE investment. 

This may be a nice annuity stream for them in retirement, as they likely don't have anything else particularly attractive to reinvest in as far as yield goes.

Recently, I was at a seminar where the speaker briefly mentioned that he's been able to make a career of assisting homeowners, who are being foreclosed on, by finding them buyers for their property and structuring the sale so that the seller is able to get paid through what amounts to an annuity through the following year.Is anybody out there doing this and if so, would you explain how it works, please.- Clif in DC

In that case you'll need to compute each payment to the days at 6% and reduce principal paid, for each payment and the last payment as a balloon payment, just as you would for a discounted annuity stream.

If I can get a 15%-20% IRR and keep it going for several years that will give me 4-6X return on my starting capital + wages earned after 8-10 years.My goal is to hit $4m by 40; buy a $1m house, $500k buffer, and $2.5m to fund a 4-5% annuity so I can travel the world in a jeep, car, boat, whatever and retain the optionality to stay at a nice hotel/ home-tel when I want to :)Anyways if anyone in the Bay Area has the same goals, interested in construction/ real estate especially out of state opportunities, hit me up, I am open for chat/ whatsapp/ coffee or w/e. 

In Florida, "protected" assets include IRAs, 401ks, your homestead, life insurance, annuities, and a couple other items. 

I made quite a few mistakes in the first 1-2 years I began receiving my annuity payments and spent a lot more money than I should have.

NOI can be thought of as a "cash equivalent" investment... say like buying stocks, bonds or an annuity. let's say a property costs 100K and throws 10K/yr in cash... that is a 10% return.