There will be more work and headaches but the property will be more advantageous in regards to deprecation, principal pay down, appreciation over the next 10 years. 

I'm offering her several hundred above her asking price in exchange for a principal only payment - no interest.  

In some cases it’s over 100-120% when you consider 5% annual appreciation or more on the property, principal pay down (my tenant is paying down) and cash flow.

If it's a light doc DSCR lender for 1-10 Unit properties, they will look at monthly taxes, insurance, interest and principal payments as expenses and will not factor vacancies, PM fees, and other expenses.

Depends on market conditions, interest rates, etc.Step 4:  Pay back the principal you originally took out on your SBLOC, bringing your leverage balance on your portfolio back to 0.Step 5:  Repeat.Opinions? 

If you are concerned about protecting principal and the next downturn hits, you will want to confine yourself to these types of loans.

(Note this simple calculation doesn’t include additional principal paydown at lower interest rates)

When you reach retirement, you’ll start drawing down from that pile, and you definitely don’t want to touch the principal.

In the first case the money woud go into your LLCs basis in the property in the second case it is principal of a loan and not deductible in any way.

The payment on a $1,200,000 property with 20% down, which is putting $240,000 down, means the payment, without taxes and insurance at 8% is $7,044 per month for Principal & Interest, and you would have to make about $256,000 annually (instead of $60,000) to qualify.