. $ _________ (the “Principal”) that I have received from _____________________ (the “Lender”),  

This comes with drawback that I have no control over the design.

That is a much more efficient structure for dealing with those issues and I believe is ultimately more cost effective and safeguards the principal parties interest more closely. 

You can leave your original mortgage and pay principal early. 

They are based on the DSCR ratio, which is rental income/(principal + interest + taxes + insurance + HOA).

Depending on the type of Heloc you get its interest only payment for the first 3, 5 or 10 years then the remaining time will be a payment of principal and interest. 

I have $30,000 I've decided I want to put down on the principal of one of two rental properties I currently have mortgaged.

I understand that you're resetting the mortgage but you can always put more towards the principal if able to.

Here are the variables you'll need:ARV (After Repair Value)Estimated Repairs (add a 10% contingency)Estimated RentPurchase PriceEstimated PITI (Principal, Interest, Taxes, and Insurance) on the refinance sideIf you know these values and ensure that your all-in cost (purchase price plus repairs) is 75% or less of the ARV, and that your rent will cover PITI + vacancy + maintenance + property management, then it's a deal worth pursuing.The BRRRR model is a fantastic way to build a portfolio and is still very feasible—even in 2024.If you're interested in more info, feel free to shoot me a DM—we can connect, and I'd be happy to assist you.

How it works: The lender gets their principal plus a lump-sum return after the property is sold or refinanced.