That in and of itself is a 10% return on investment for a total of 24-25% ROI over 3 yrs not including principal paydown (which won't be that much with the $400K loan being interest only. 

I’d probably share in your concern in the single-family or small multi space, where the principals of the management company might also be the ones showing units, taking calls from prospects and making leasing decisions.In the large multi space, they probably wouldn’t steer residents to properties owned by the management company.

Once the principal is placed back into the line, you no longer pay interest on that money.  

Do you need a key principal to sign on the loan to help you qualify for buying a 60+ unit?

Because of the growth of the past 6 years from when the Utah market bottomed in 2012, appreciation and principal pay down appear to be the only sane reasons to hold rentals in your portfolio in Utah - because compared to much of the rest of the country, the cash flow is lagging here. 

This equates to 7950 in payments on the loan, but about 4500 of that will be off the principal. 

If you had them drafted by an attorney (probably not since it's at usurious interest rates but you never know), there could be a provision in there for what happens if the loan is deemed to be usurious (i.e. interest rate gets automatically reduced to lawful rate and excessive interest collected gets applied towards unpaid balance of principal). 

If I can get the home appraised at $240k+, I would be able to finance the repayment of hard money principal, and have a property cash flowing.How is my thinking on this deal?

If I sell, Do you think I could pocket my original down payment and 1031 the appreciation and paid down principal?

Not sure if this would be the exact section to put this so sorry ahead of time if it isn't.I was hoping to discuss the idea of making an additional principal only payment on my mortgage every month.