(usually something more like five years)Will the total principal balance of the HELOC be $120K - $130K after renovations?

I find this model very hard to make successful unless it is an owner occupied and they are the principal manager of the RAL.

What many investors are learning is that this leads to terrible outcomes including paused distributions and loss of principal invested.You are technically correct that debt will always multiply returns.

At 25% down I’m looking at roughly $2300 for principal, insurance, and taxes per month on a 30 year loan at 7.6%. 

They forget to mention the $43k is not their return, but return on principal and thats all you are getting from your original $120k...

Plus, the return will grow with appreciation and principal paydown from rent.

Told him that I was not the guy for that because I needed to one day OWN real estate so attacking principal is a day one necessity. 

See example below: DSCR < 1 Principal + Interest = $1,700  Taxes = $350 Insurance = $100 Association Dues = $50  Total PITIA = $2200  Rent = $2000  DSCR = Rent/PITIA = 2000/2200 = 0.91  Since the DSCR is 0.91, we know the expenses are greater than the income of the property. 

A monthly savings of $527 that goes into your pocket.Plus, since the seller has already been paying for a couple of years, the principal has been paid down $15,000.So, you are “in” for about $15,000 and have all of these great benefits.

According to the Consumer Finance Protection Bureau...Is my PMI automatically canceled once my principal balance is 78 percent of the home’s original value?