So can I calculate my cash on cash return like below $40K(appreciation)/($42k(Down payment)+(2.1K(Monthly payment for Mortgage+HOA)*36)) = 40/(42+75.6)= 34% so the annual cash on cash return is about 1.34 to find the cubit root.

I suggest you find other sources of income or partner on deals to grow your real estate portfolio.  

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It also requires different reporting of that separate interest expense on the K-1 each year so the partners know they have the obligation of tracing that interest expense to however the partner used the distributed proceeds.I typed all this up and realized Mr Brooks has left the building and posted this 6 months ago, but hopefully someone else will find this useful!

I've been trying for years to find somebody that would give me a line of credit on an investment property but have had no luck. 

Then say you want to talk to that person, and find out if in fact they are OK with theft occuring but saying you have to have a contract saying they cannot steal from you before they will prosecute it. 

You might be able to find something in a neighbouring state to the east which is within driving distance.

How did you find this deal and how did you negotiate it?

You may want to find out what you can legally add to a future lease.

They have a payments 3rd party website, but it's hard to find the link from their main website.