say you have a few different rental properties...you take all of the extra money you are getting from rent from the other properties and apply that to the principal of one home until it is paid in full...then you start with the next property until that is paid off...Do you use this strategy or do you know of anybody using it?

Just be sure that the financing and appraisal contingencies last through those six months.Alternately, you could ask the owner to carry the financing for a period of time in order to reduce the purchase price by reducing the principal.

But, I believe collecting a fee for an assignment where you are the principal, is not covered.

Example would be as follows:$1695 - Amount tenant pays for rent$152.55 - Property management fees (9%)$1542.45 - Amount paid to myself$1469.02 - Mortgage payment$1500 - Amount I pay for mortgage (I prefer to round up just to pay a little extra on the principal)This leaves me with the $42.45 profit from the property.I'm not sure how to buy in an additional market (or even go looking for one for that matter) where I could purchase an additional property for income purposes.

The problem I have with principals like the 2% rule is that they're too black & white.

3.500%Taxes ESTIMATED AT:$420.00Refinance Loan Amt (without UFMIP / Funding Fee):Hazard Insurance ESTIMATED AT:$100.00Loan Amt (without UFMIP / Funding Fee):$405,300PMI/FHA Mortgage Insurance:$455.96UFMIP / Funding Fee PERCENTAGE:1.750%MI Factor1.350%UFMIP / Funding Fee DOLLAR AMOUNT:$7,092.75HOA DuesTotal Loan Amt (with UFMIP / Funding Fee):$412,3932nd Mortgage Principal and Interest$0.00Interest Rate:4.250%Loan Term (in months):360Value:$420,000TOTAL MONTHLY PAYMENT ESTIMATE:$3,004.69Loan to Value:96.50%Estimated PayoffESTIMATED FEESESTIMATED LOAN COSTS--BUYERESTIMATED PREPAID & ESCROW COSTS--BUYER (SEE NOTES BELOW)ORIGINATION FEE0.000%$0.00Per Diem Interest on New LoanASSUME$48.02LOAN DISCOUNT0.000%$0.00(from the day of funding through month end).

What I meant was that the total monthly payment for principal, interest, taxes, and insurance combined would be about $262/month.

Since PRINCIPAL repayments aren't an expense when you track them in Quickbooks, how do I track them in a way that lets me know what my monthly cash flow is?

If I put 20% down and get 4.375% that would put my principal/interest at 1,318/mo.

It has been about 3 years now and we've gained about $5,000 in equity through payments to principal.