Treat that money like you're dealing with the portion of that persons life they traded to earn it....Well put.the owner has every right to foreclose should there be defaultConsider running the instrument you will use with your real estate lawyer . 

Good enough for me.Frankly I'd say leave the tenants alone - this is a proven financial instrument that doesn't need a new landlord screwing it up for minor and petty gains.

Leases are a business instrument.

It combines features of a HELOC where it factors money daily (how you save your interest), it takes the max ceilings and floors for rates like a ARM mortgage, and it also acts as a checking/savings account in that you can store and draw money from it for the life of the term (usually 30 years) unlike a HELOC where its 10 year draw and 20 year Principal and interest no more draw after year 10.Where the benefit comes in is opportunity cost of interest since interest is factored daily you could park your pay checks, savings, and other cash instruments into this LOC or HOA loan and save on the all differential in daily interest charges that would normally be paid with a standard 30 year fixed mortgage or other typical mortgage that factors interest/amortization "monthly."

So glad you have joined us on this journey.It has been so instrumental in our investing journey, and in my growth as a real estate agent. 

@Trinity CarrickThere is a similar financial instrument called "Liquidity Credits".

I hope I have been instrumental in guiding you to understanding QuickBooks a little bit better.  

An instrumentality in the judicial or legislativebranch of the government.6.

You can look the lease over, it may have things about dangerous instrumentalities, or acts that increase the insurance. 

@Carl West I'd secure it to the property with a promissory note and a mortgage instrument.