It's my understanding that PPR uses your capital contribution to buy nonperforming notes to rework them so they will earn greater than 12% APR.  

You are required to file a complete and accurate return, which means reporting the income that you earned along with atleast the direct expenses that you incurred on your rental.There are two comflicting forces - Your tax accountant wants to be aggressive with deductions because it will entitle you to paying less taxes(now or in the future).Your lender wants to see as much income as that will increase your Debt to Income Ratio(DTI).The good thing is that you can speak with your lender about 'one time expenses', that were only incurred in that year and are not reoccuring. 

When it comes to trusting someone with my hard-earned money: transparency and educativeness are the traits I look for. 

Worst case deposit money at each bank and earn.  

I did not care about the interest rate much because I am thinking banking is like a leech sucking up your hard earn money.

But what difference does it make if the leveraged portfolio earns an insufficient risk adjusted return?

The market appreciates 3% per year.If you pay cash for one house and rent it for $1,500, after five years, you'll have earned $90,000 in rent income and gained $34,000 in appreciation. 

🌞6️⃣ Rental Income Deductions: Earn income & deduct related expenses.7️⃣ Home Equity Loan Interest: Deduct interest if used to improve your home.8️⃣ Military Moving Expenses: Active-duty?

Many successful active investors transition to passive investing as a way to diversify into new asset classes or markets and to earn back some of their time and still benefit from the positives of real estate investing.To answer your question - I would allocate a portion of the $200,000 to MF as I believe this is a good time to invest in an asset class that has recently struggled. 

I could sell the property and net $170k and then reinvest that and earn 9% interest annually via lending hard money.