While sophistication of your equity partners (private money lenders) will vary between residential and commercial, the principle of raising private capital is the same.You need to develop your own system which allows a constant stream of PML even when you don't need the funds and/or don't have an active deal under contract.For example; I raise private capital by offering free educational workshops for people with self-directed IRAs.

@Chris May,You're really whipping a dead horse.The whole principle behind mortgage acceleration involves paying the principle off faster.How it is done is irrelevant.

An emergency fund needs to be liquid, and immediately available to you in addition to being low risk and protecting principle. 

By the way if I see the same proposition that was previously on the ballot and got struck down, I automatically vote against it on principle regardless of how I voted for it when it was initially on the ballot.  

Sometimes vendors get short-sighted and need to be reminded to not be ridiculous. 

Most are social medial influencers with only an elementary understanding of real estate teaching the most basic principles....BRRRR, section 8 rentals etc.

Let's say at 6% over 30Yrs will be about $960 per month(Principle/Interest) with the remaining  interest only portion $40K costing roughly $200 per month. $1500- $960 + $200 IS $340Cash in your pocket after everything roughly $1500-$1160-$340 which is not bad for a 100% financed deal(INFINITE RETURNS)Now, If you ran this analysis on a 1% deal as @Nicholas L. mentioned you will undoubtably end up in the red each month.All the best!!!

You pay additional principle on your mortgage you are saving yourself 6.75%, BUT if you can put that money together and do something MORE GAINFUL with it then that is what investing is about.

Ithaca usually seems to have good intentions but this one is just short-sighted.

I am confident that I will be able to refinance the remaining seller note principle with private money to allow me to hold off on putting more money in the deal.