Principal paydown of about 2k a year. 

I paid extra principal monthly regardless.  

You are minimizing your input to maximize your output (output being an appreciating asset, paying down principal, tax benefits.2.

Build the equity through appreciation and principal paydown, save on living expenses, hedge against inflation, then leverage that asset to buy your next home or rental property.

Equity from appreciation and loan principal payment will be captured in ROE; hence conversion to increase unit count and bump up cash flow.

And one thing I think you’d need to add to your analysis is the total return on retaining the property — that is, the equity appreciation too.If you buy a CD, when it matures you get back the nominal principal but inflation has eroded its real value in the meantime.

Monthly payment comes to $917,  plus another $350 for taxes and insurance so ~$1280/month due to the seller.Using a private money lender to fund the deal, borrowing ~$130,000 @ 10% interest rate, interest only, principal + interest paid as a balloon after completion  or 12 months.House is a 3br/1ba 950sqft. near a university.

Daniel,Seems you do have a lot, it seems there are a lot of "predictions" to values / costs increasing in there, one thing i saw is that you have loan Interest payments/ cost increasing every year too, if you have a fixed loan those costs will not increase, they will decrease and your Principal payments will increase.

After 4+ years, my loan and the principal is paid back and I collect ATM distributions for another 3+ years. 

Monthly Payment AmountRent Comparison: If the property would rent for $1,500 per month, you may want to structure the financing so that the monthly payment is similar to or slightly below this amount.Example: A $180,000 loan (after 10% down) at 8% interest on a 30-year amortization would result in a monthly principal and interest payment of about $1,320, which is close to the rental value and should be appealing to buyers.5.