A portion of each payment is allocated to return of principle, gain and interest.Most importantly you will recapture all depreciation in the year of your installment sale.Didja know know that in the event that you found yourself needing to do a 1031 there is a way to combine a 1031 exchange with an owner carry note? 

I'm a huge fan of the Rich Dad principles and I totally agree with the quadrant (I have experience now in all of the quadrants and I find them to be completely accurate).

Unless you have a crap ton of properties its fairly easy to just update the numbers once a month by logging in to your banks website and copying over the new principle balance figure. my excel simply shows property address my estimated value, the debt amount and calculates total equity. 

If you want to be creative in a smart, ethical, less expensive way, ASK THE SELLER. 

Those that got burned were way way way over leveraged, and many on interest only loans with no way of paying the principle. 

In my case the rent of one unit covers all the principle and intrest of the property plus a little more. 

Here are the numbers:Monthly Payment: $1,255.60Principle balance: $177,466.11Principle: $301.61Interest Payment: $555.52Escrow Payment: $398.47Mortgage Insurance Payment: $125.36Additional Principle I pay each month: (Roughly) $144.40, to make the monthly payment an even $1400.I was given a rough appraisal of about $275K to $290k, and I know id need to meet the 75% LTV rule, so there's probably not as much Cash out equity available as I'm hoping for, but I figure Id see what my options are.  

Would there be anything illegal or ethical with it?

There may be some gray area here in terms of ethics so I'm interested to know what you think. 

A lot of people think they can take on this tenant class not knowing that standard REI principles and practices do not apply to the D-Class arena.Did you ask him where he got the 1MM number?