I would guess that the fund is targeting distressed notes of some kind and therefore is discounting the principal of the notes it targets as investments to deliver back a higher return than market interest.  

Assumptions $8,106.00 Take Home Pay Income http://www.taxformcalculator.com/tax/150000.html ($2,611.60) Student Loan 230k, 10 yr amort, 6.5% ($150.00) Minimum Monthly CC Payment I have no idea how to calculate this, so I put this number in ($648.36) Principal & Interest 140k, 30 yr amort, 3.75% ($187.50) Taxes & Insurance 1.5% of 150k house ($179.69) Car payment 10k, 5 yr amort, 3% $4,328.85 Total After Leverage   ($2,828.85) Monthly Spending Even after $1k groceries, $200 gas, $200 cable+phone?

Yes there would be principal pay down etc.

Occupancy, Preservation, Maintenance and Protection of the Property:Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating circumstances exist which are beyond Borrower's control.

The current balance is simply the original borrowed principal, less the principal portions of the payments made to date.  

My silly way of remembering costs is the acronym MICE TRIP V (Management, Insurance, Capital Expenses, Taxes, Repairs, Interest, Principal, Vacancy).

I need a better program to keep up with late payments, multiple payments in one month, pre paying on the principal, etc. 

you must be a  principal broker..

More important than the down payment is that the property might not even be worth the principal balance on the loan.  

That's the Return on Investment - ROI=2% a year on asset price.Add to it that I still pay the principal - so actually - I dont see any cash - until I sell the property !