Hey Mike,You're in a great position to start expanding, and your goal of owning 4-6 properties in the next few years is definitely achievable.

@Anthony Colachicco If I were in your position I'd get into a multi family and house hack if possible.

Quote from @Greg Geaski:  I have never experienced this or heard anyone that has been in this position.

This creates a risk-free profit center for them, but no one here is a fan of the upfront fees.On the positive side, I believe their website is one of the best I’ve seen for a lender.

You should notice I didn't say "Positive Review" or "Great Review" - this is critical to the psychology of such statement.Overall, the key to using cash for keys successfully with a stubborn tenant is to approach the process with empathy and open communication.

I was interviewing someone today for a marketing position and she is working for a company that were two IT professionals who sold a business, started a multifamily fund that is not doing well so now they are starting a ground up development fund for single family homes and another fund in commercial real estate.

Regardless of what you do you're in a great position with equity.

If you ever have to go to court on something like this you will be in the odd position of being both the landlord and the tenant, so I would leave nothing to chance or interpretation.Personally, I agree with Nathan - I'd have real questions about any potential tenants that were OK with this kind of arrangement. 

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

I’m worried we may find ourselves in a position where they don’t pay and we may have to sue.