Other than Wayne, you're getter erroneous advice.First of all, you cannot contract to prevent a borrower from using his subordinate equity as collateral to additional debt.

If, for instance, you plan to spend it on lifestyle inflation then either option is good, and I would err on the $2500 side just to put a cap on the monthly bleed.Assuming you re-invest the money, $1 today is really better than $1 tomorrow. $400k today is way better than $400k in 13 years (agree with Account Closed).

I was not relying on my erroneous cap rate number as a deciding factor, but on the actual projected expenditures vs. income and the potential return.Thanks again for your help!

However, depending on which entity is looking at you, doing so could be construed as circumventing the law (and proving otherwise could be a costly lesson, even if you win).The moral of the story... when there's a licensing issue, proceed with caution and err on the side of licensing (as you have already pointed out).  

I have found that when I am just staring out on something, it is healthy to challenge my assumptions and "discount" mysleef a bit to err on the safe side. 

Now in my area this is really erroneous considering a Mobile Home will typically sell for $30k to $65K.  

The GREC does not generally interpret legal matters and will always say NO to err on the side of caution.If this is going to be a big part of your business you might want a legal opinion letter from an attorney standing by the structure and disclosure they are telling you to use.

Should do" is something else entirely.... and remember: every moment you spend trying to defend your misguided beliefs or learn enough about credit and credit repair to successfully challenge an erroneous credit report entry (70+% of them are erroneous, by the way!)

If both of you are nit pickers it probably won't work as neither will be satisfied with the fixed amount, I tend to err on the side of my vendors, I don't step over dollars worrying about pennies so I'm fine to give a little more in the way of compensation today as I know the long run is all that matters, and seriously in the big scheme of things if $100 or $200 one way or the other over a year for a trusted person on your team makes a difference you probably have far bigger underlying problems.

Is there a chance that maybe some of the collections are obsolete, out dated, or erroneous?