All of this can be summarized as, "this strategy will improve your cash flow and give "some" appreciation but not the same appreciation as officially converting the home to a duplex". 3.

Great summarization, thank you for sharing. 

Summarize I do not believe $700 is close to enough.  

.### Financial Impact of a 5-Year Balloon PaymentNow, let's summarize your financials with this balloon payment setup:- **Total received from monthly payments over 5 years:** $83,669.40.- **Balloon payment after 5 years:** $201,832.48.- **Initial down payment:** $100,000.- **Total amount received:** $83,669.40 + $201,832.48 + $100,000 = $385,501.88.### Return on Investment (ROI)- **Total profit:** Total amount received - initial investment = $385,501.88 - $235,000 = $150,501.88.- **ROI over 5 years:** ($150,501.88 / $235,000) x 100 = 64.04%.### Annualized ROI (CAGR)To calculate the Compound Annual Growth Rate (CAGR) for the 5-year period:\[ CAGR = \left(\frac{Final\ Value}{Initial\ Value}\right)^{\frac{1}{Number\ of\ Years}} - 1 \]\[ CAGR = \left(\frac{385501.88}{235000}\right)^{\frac{1}{5}} - 1 \]Let's calculate this CAGR:\[ CAGR = \left(\frac{385501.88}{235000}\right)^{0.2} - 1 \]\[ CAGR \approx 1.1054 - 1 \]\[ CAGR \approx 0.1054 \text{ or } 10.54\% \]This 10.54% annualized return is substantially higher than the 3.03% from the 30-year term scenario.

@Gaurav SharmaI think this article summarizes the pros & cons well.

If the properties are managed by a third party management company, 90% of the income / expenses should be summarized by the PM Company.You should be able to get a year to date statement providing you a summary. 

There are "interest tracing rules", that can roughly be summarized as the interest on a loan is deductible as a business expense only if you use the funds for that business. 

A notable exception is the rapid appreciation in the last few years, summarized in the chart below.

The STR Loophole can be complicated and is difficult to summarize in a single short post.

To summarize, if you are approached by a syndicator raising money for a multi-family building that meets this multiple offer fact pattern (as is usually the case) who is awarded the contact, they more than likely assumed the most ambitious rent growth, most understated cap ex costs or operating expenses or lastly the cost of equity (your return) is projected to be less than the LP’s the other bidders relied upon.