For primary residences, lenders typically don't require PITI (Principal, Interest, Taxes, and Insurance) reserves beyond the down payment and closing costs.

I have paid the principal down to about 179k. 

The note is supposed to mature on December 1 of this year but she's behind about 15k in principal alone. 

If I were to pay back the $100k principal plus, say $8k in interest in 2026, would both he and I report this interest expense/income on our 2026 returns only, with no mention of it on '24 or '25 returns?

If your goal is to get into the next house/2-4 unit, save for a down payment rather than throwing money at the principal to eventually borrow against it via HELOC.

No, by amortization I mean amount of principal paid down every month reducing the mortgage balances.2.

Is this "responsible for" amount 50% of the mortgage principal or should I put all 100%? 

The principal works until it doesn't work.

We are hoping that rates come down enough that after we refinance we will be able to move out of the property and hopefully have rents cover PITI payments.I realize that until we refinance, we wont be gaining any equity in the form of principal reduction, but we are okay with that for a couple years because we would still be gaining some equity in the form of appreciation and renovations.Does anyone have any comments or feedback about this strategy?

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