Principal balance is $31,000.

Principal balance is $31,000.

Hey everybody,A bunch of the OMs I'm getting sent include a principal reduction in the financial analysis.

However, the realtor told me that I can only buy multifamily if I have 20% down.Looking at the current mortgage rate (close to 5%), I am indeed a little bit cautious if I decided to buy a house (SFH or MFH).My game plan now is to save up my money for the next 12 months, so that I have enough principal to put 20% down for a property while learning real estate investing concepts since I am very new to all of this.May I ask what do you all think about this strategy?

If you now the rents can support the principal, interest, taxes, and insurance and you can make enough to handle the expenses on the property I would go with a lender. 

And my wife for the support.The best part of it all is we just found out we’re having a baby girl early next year and we added $100 automated principal payment each month to our 30yr fixed mortgage so that it amortizes when she turns 18 as @brandonturner suggests.I’m so grateful for bIggerpockets and the community it’s formed to inspire and support me through this journey.Next year I hope to do my first BRRR!

NAR/CAR ethics stipulate 'Seller is Agent' disclosure in writing on the MLS etc at time of listing because even if Seller is not the Listing Agent, licensed seller/owner may expect and/or receive compensation (ie, gift, referral fee, portion of listing agent's compensation, etc).Thus licensed seller is inherently not strictly limited to being a principal in the transaction, so would have had to disclose seller is licensed agent. 

Acquired a note that pays principal and interest

With that said cash flow is one piece, and principal reduction on payments is another.

But there isn't a lot of calculation involved, other than figuring out what your payments would be on different principal amounts, and any widely available online mortgage calculator can do this for you in two seconds.