They probably won't show up to contest and then it will go to auction and you're buddy will set whatever bid he's willing to sell the property for up to the maximum allowed which includes principal+interest+attorneys fees+penalties.

My preference is to determine whether the principal is aware of any such issues or just ignorant to the facts and make a decision about investing more time into a messy file. 

I too have gotten screwed by Realtors, car sales people, lawyers, landscapers, mtg companies, hell even my sixth grade principal wrongfully suspended me.  

So I make payments to this mortgage as if though it’s a 30 year mortgage but my last payment amount due is whatever the principal balance left over is at the end of year eight.

This greatly reduces risk on the principal invested because, at worst, the lender owns the property and will look to maximize value by selling the property or selling the non-performing loan.

Would I pay an extra $25k in principal on a triplex that cashflows $800 per month?

@Rob KrachYou are clearly acting as an agent and creating an illegal lease mandating tenant to do repairs.You can't find tenants for people because it's a "friend"my advice to you is to get a license in the state of Illinois, and then list properties for lease option and get a fee for finding a tenant buyerOr find a way to get on title as a principal without the license, such as subject to existing financing or land contract.As @Curt Smith said Google "YouTube Jeff Watson illegal Wholesaling"The business of Real Estate Investing takes not just reading on boards but getting a good contract attorney and understanding local laws of agency @Bill Gulley

Now, cash-on-cash return ratio has its own limitations, the principal one being it is only a single point in time.  

Wholesalers try to avoid being "unlicensed brokers" by becoming a principal in the transaction.  

Its worth approx 100k, bought for 90k, $650/mo principal only payments with 4 year balloon.