Is the P&I payment actually principal and interest or interest only?

Here are the numbers:142k principal balance156k accelerated balance due to past due paymentsSeller only wants 5k out of the deal, I offered 165k (redfin estimate is about 217k, for whatever that is worth)Right now my only question is, how is the best way to go about this?

FHA security instruments require a borrower to establish bona fide occupancy in a home as the borrower’s principal residence within 60 days of signing the security instrument, with continued occupancy for at least one year.Source: https://www.hud.gov/sites/documents/4155-1_4_SECB....

Last question, do any of you take the tax benefits that you get every year and pay down on the principal of your investments?

Recasting is simply paying down principal in blocks and asking the lender to re-amortization the loan whereby I get an immediate return of increased cashflow.  

So the Principal is 9,500$, loan term is 5 years so 60 payments, APR of 5.5%.

Otherwise a new build would qualify.Another thing to keep in mind is that the investment must rise to the level of a "trade or business" Buying a principal residence (even if it is a new build)  would not be considered a trade or business and thus would not qualify (unless further guidance is issued)@Melissa Gittens here is an overview of QOZ's:https://www.biggerpockets.com/forums/51/topics/586...

But if you're trying to eliminate PMI on a current loan by simply getting a new appraisal and illustrating (via principal pay-down and appreciation) that the equity position has increased, you would need to show 35% equity (65LTV) via that new appraisal. 

Always use a warranty deed to avoid any issues with the tittle insurance when transferring tittle.Also, Ive recently learned Fannie Mae allows transfer of tittle to an LLC without accelerating the note...Fannie updated their servicing guide to state:Unless the previous borrower requests a release of liability, the servicer must process the following exempt transactions without reviewing or approving the terms of the transfer:· A transfer of the property to a limited liability company (LLC), provided that § the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).

Some investors and I are the principal purchasers of a new apartment development in Colorado Springs, CO.