But buy and hold generates wealth - thru rental income, principal paydown, and appreciation.Whether its commercial or residential really doesn't matter - just as long as its buy and hold. 

Your principal is still at risk when it is invested, even if you have chosen an allocation with historically low volatility.

Our current mortgage is $1,151/month, with an outstanding principal balance of $116,536.

In case if the units stay unrented, the borrower should have enough cash reserve with him to pay Principal, interest, insurance and taxes for 6 months.

Also, keep in mind, that your rental income and expenses do not include principal paid on mortgages.I think that for you more meaningful result would be: net rental loss + depreciation taken for the year - principal payments on the mortgage (interest portion should've already been included in net loss).

@Walter Roby jr - Hey Walter, That's exactly what I wanted to do, but the Reverse Wholesaler brought in the Cash Buyer and she only wants to contract with her LLC as principal. 

Currently, the principal on the property is 256,507 and the payment on it is $2,285 .

By spreading out the principal payments they spread out their tax burden and if they pass before the loan is paid off, there are no capital gains owed by the heirs (it's passed to them on the stepped up basis).

Your primary state of residence and principal place of business comes into play with many states. 

If you're worried about the cost of interest over time, well, you have the option of making additional payments towards the principal, but it's nice to have a low minimum payment when you don't have much cash, or you have a vacancy.Sorry if I haven't answered all your questions, but I'm sure there are other members with better ideas than mine.