You can add details in the offer that include the payment amount they are getting, total interest paid in the life of the loan (maybe you're offering a 5 year balloon) and show what the amount of principal that will be remaining when the balloon is due.

He pays ordinary income on the note interest and CaP gains on the principal he receives each year. 

Although I agree with all above, and I'm not advocating for or against either strategy, another thing to consider is as long as your tenants are paying your mortgage anyway, I think it would be better if they were paying down the principal of the loan, instead of interest.

Trying to analyze keeping my primary residence as rental this calculation was done as a scenario to keeping my current loan the way it is.Purchased - $110,000Down Payment - $5500Taxes - $3999Minimum Rent - $1500Currently owe $89,000 and my payment is $1000I can remove PMI by paying $7000 towards principal saving quite a bit off that as well.Let me know if you need anything else.Seems like worth keeping but curious what others think as I am new to this.View report*This link comes directly from our calculators, based on information input by the member who posted.

the government is not going to pay their "rent", interest, and lease option principal.

., including private mortgage insurance payments in addition to the regular monthly principal/interest payment) and that you consider all the up-front costs.

With an inherited IRA, you need to ensure the cash flow your real estate investment produces will meet your need for taking required distributions.Real estate can actually be a very good investment for an inherited IRA, as the principal is secured by a less volatile real asset that produces consistent income. 

And while the fees are not really an issue (you have the borrower pay them), the reserve requirements constitute the principal "headache".

I'd tell the speculator to stick it just as a matter of principal.

For example, if you purchase a $500k legal balance (unpaid principal + accrued interest/fees) for $200k, then rehab and sell the property for $300k, can you write off the uncollected $200k (the $500k - $300k difference i.e. not pay taxes on your profits, as on paper as the lender, it is a "loss")?