The note investor who thought interest is paid on the original principal rather than the unpaid principal balance.  

Annual return is 12% and you get your principal back after 3 years I believe. 

I'm interested in everyone's opinions on using a HELOC to purchase turn-key rentals for the short term and covering principal paydown across all new mortgages / loans ( HELOC ) through excess income. 

This is another deal where Capella earned over $100K in origination fees, the loan quickly went bad, and now Capella principal Corrine Cordon looks to further enrich herself by buying out investor interests at a discount (offering 75 cents on the investor dollar).

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Salavatore,I have been doing NNN about 21 years as a principal broker and an investor.

Ken McElroy, on the other hand, is listed as CEO and Principal of MC Companies, which I have heard good things about.  

I check the SEC, FINRA, ratings websites for inside information on the principals in the company.

If the amount paid to purchase an existing note is below the principal balance or more correctly, the unpaid balance, the investor will benefit from an early payoff to the tune of the discount.  

Your current home would rent for $1800 and PITI (principal, interest, taxes, and insurance) is $1250.