We are rewarding people for have a tougher barrier if I am reading this correct.

Who reaps the rewards of this?

You're taking on a lot of extra risk for no reward.

Just make sure you understand the risk-reward.

Rewarding good behavior.And I just realized what I did looks great in court.

Also real estate is the only market where it is encouraged and rewarded to trade on non-public information (ex: off-market deals..)

Wanted to see if the reward is worth the risk. meaning lets say I have to drop rents 300 per door, this is worst case, then I no longer cashflow , but if itake less and thus cashflow close to 1000 then I can lower rent a lot and still be good and I like the have the security . at the same time paying 0 for the house and actually profiting 60k , sounds great and goes along way

When I was underwriting that was always the first question I asked but I can't recall ever seeing a written underwriting requirement to ask.Unfortunately in the claim I described the Grantor claimed she didn't have any of the money left so as it frequently does, it became a matter risk reward, good money after bad type analysis and the company ate the loss. 

Look at the risk reward as well.

You are able to pull out your initial investment and leverage your cash to work in more than one place (your initial investment continues to make income while you re-invest the cash somewhere else.)In either case you need to weigh the cost of financing against the reward in some cases refinancing does not benefit you but if done correctly it is a powerful tool to increase your investment capital and reach.