Remember that number...you'll use it later.4 - Now assign each R/R to the partners, and total up the numbers for each partner.5 - Multiply each number for each partner in Step #4, by the number calculated in Step #3 (I told you you'd use it later. 

My price was not some paltry 10%/15% discount, it was a multiplier.

I personally like to earn active income so that I can multiply those dollars in passive investments. 

Meaning, our dear borrower paid $19,900 as interest and only $1,700 as principal.No doubt that thanks to this great guy Spitzer it is worth being the bank (-: (and indeed you rarely see banks loosing money (-:)I can tell you that I owned few Duplex as buy & hold investments in Indy, and the 3 T (tenants, taxes, termites...you can add trash, toilets...) caused me to see how my 9% or 10% target return to turn into 4% or 5%.Not mentioning occupancy problems and such.And last point - You have mentioned a point that reflect another advantage in this strategy - Every month you are getting back principal & interest, meaning, you decrease your investment amount, and you get your money back allowing you to re-invest in the another transactions (line buying another note every 2-2.5 years).I can tell you that I have invested in multiply strategies in REI (done flips, had buy & hold) but I found the notes investment niche as the one the had the best potential-risk ratio, mainly because you have a property to guarantee your investment, and of course because you don't need to care about the 3T (Which cause you to earn more/invest less time in each investment).You don't have such powerful guarantee in almost any other investment.And seems your strategy is completely based on appreciation - While if you look at 100 years range, no doubt the real estate values greatly increased.

Remember, your property taxes are the product of your assessment multiplied by the tax rate, which is unknown.

If it's a triplex and each unit needs the same work... then you need to multiply times 3 plus any exterior or shared items. 

Once you're comfortable with the total gross rent you can charge, multiply the total monthly rental income by .95.

If I actually build a house or garage it again multiplies more.Only a tiny fraction of what I spent would have been spent if I were not building a business. 

  $20K * 1.05^25.Then multiplied that by 25 realizing this number provides a far worse number than actual because I used only the worse year multiplied by 25. 

One minute your couple of chickens and goats are multiplying, the next minute they are all swimming in curry.