The Landlord has a deposit that is contractually held for the sole purpose of paying accrued debts upon termination.

Hello, After listening to hundreds of podcast I decided to create an account here :) Right to the point, I currently own a 1 family which has significantly accrued equity within the past 5 years, $200k+.

The owner is a friend and will carry for 2 years (just in case something goes sideways) @ 7% APR, with $50,000 down, interest can accrue and be paid when the loan is paid off after I refinance. 

The contractor would be responsible for providing the majority of the labor. upon the sale of the property, I would get re-embursed for the expenses, then the remaining profits would get split somehow. the wages accrued might be subtracted from their cut at the end, and they'd get the remainder of the split at the end.im curious what might be considered as a reasonable portion, given those parameters.

Thank you for the informative advice @Brandon Rush & @Dominick GalinisMy goal is to accrue enough passive income that when my wife and I become empty nesters, I could look at her and say "lets fly to Aruba on Monday".

Of course I tried to explain how holding onto debt would accrue more debt rather than paying it off now with a debt consolidation refinance and having a perfect credit score by then...

How much equity will I accrue after the year and a half?

So if you're contributing 50k to the deal, then you should be pocketing (ideally) 5000 per year and you would split the equity in the property that accrues over time (if you were to both co-sign).

I live in North Carolina and I am required to keep deposits separate from my normal checking account. if you keep the security deposit in a account that accrues interest some states require you to pay the interest to the tenant when you refund their deposit.

Be mindful to accrue for future replacement of all those septic tanks.