Most investors here look to have the rent cover the mortgage and some.While the principal on the mortgage is not an expense, the interest, property taxes and insurance are deductible expenses.

Over two years, I've put $20,000 in equity into the house via paying down the principal (no improvements).

Otherwise keep your current mortgage but pay as much extra on your principal so that you can get it paid off much sooner than 26 years Once your wife is able to work again it will be more doable to make even larger payments towards your mortgage to get it paid off sooner.

The law's on BPO's vary by state and some only allow a broker/agent to do them in the chance of getting a listing versus actual payment.Also the broker/agent unless a principal owner should review their IC ( independent contractor) agreement with the brokerage.

That will be in the commercial space, where you can find a key principal who can get you qualified by his Networth and liquidity.

Principal only payments?   

Principal, interest, depreciation/amortization are all additional expenses that will reduce the overall taxable income (and your share of that).

Do you structure the lease option as an aggressive buy down of the principal so that by the end of the 5 years there is appreciation through principal reduction?

When someone has more than 10-20% of the entity that will be assigned to the property they might have to be vetted by the financing company the same as the managing principal.

I have a single parent who owns our house and is currently only paying the principal and some interest on her line of credit.