I am going to pay him the $1,200 as I believe this is the morally right thing to do as I did indicate that he would receive something on the back end, however vague that agreement may have been.

Well K Gold, doing what is "right" is an interesting dilema these days.Only if you don't have a moral compass.Don't be a victim.I've never had a dilemma figuring out what the right thing to do was.

There's no shame in having a shotgun or even just a .22 rifle for protecting your food supply (and family/friends) against animals that aren't bound by moral laws and are not a spiritual dilemma for you to put down.

Hopefully one with some degree of morals and intellectual capacity will come along and figure that out before its too late.The current system is not working in regards to its original intent.

Its not a good idea, in my opinion, to throw a standard percentage to cap-ex as it can be misleading.The moral of the story is, keep good cash reserves to do cap-ex work if they arise before your reserves are sufficient, accelerate your initial cap-ex reserve rate if you know that life-spans are coming to an end, and try to get the property at a discount to counter differed cap-ex.

The movie takes an unexpected turn (and I don't want to spoil it) - there are some interesting lessons about integrity, moral, greed and honesty.

Moral to the story sacrifice.

Good luck this one is a moral and ethical dilemma.

@Jon QuigleyThe sub2 is not a private mortgage, you are getting the deed and morally promising to pay the underlying PITI for a period of time and then paying it off in full down the line.There is no foreclosure by the seller. 

Unless you keep repeating this, you are not showing a lack of integrity, morals, or anything else that has been suggested in here.