Large losses of principal is devastating to a long term plan.

You know you can send in advance principal payments to skip the interest payments, correct?

Then with the FP background it opened doors to creative deal making, working out problem loans, foreclosures and commercial transactions with businesses.David, my most creative deal, seller financed with cash contributed above the sale price as a contribution, over 800K involved a charitable remainder trust and funded by a creative note broken out in several principal parts for the beneficiaries.Anyway, cold calls are a favorite thing due to those experiences too, no door too tall to knock on!

If rent is $1000 mo figure $500 for expenses, then less than 50% for PI (principal and interest).

IMO, you won't be headed to jail if you sell an covered property on a contract for deed/note, some 25K deal, but you will lose the deal and your collateral, this is a standard outcome for various lending and collection violations, loss of principal and interest as well as the security.

Hey Jon,A friend of mine Ben Soovacool is a principal broker in Naples working the residential side.

Then once you have that figure I would compare your monthly cash flow savings as well as your monthly principal reduction on each mortgage.

if i understand correctly, you can buy today, have your normal expenses, but only have interest wihtout required principal.

Gets me 2.9% cash-on-cash, before principal payment that is 9%.

That extra principal payment would make a much better return if it was used towards the down payment on the next property.