As Tod mentioned, the allocation of expenses will stand out and the recognition of income.

The closing agent will take the $160K you bring to the closing table, and allocate $100K to pay off the loan, while giving the rest of it to the seller (about $60,000 after fees, etc).If the amount you're buying the property for doesn't cover what's owed (using Jerry's example, you're purchasing for $160K and the seller owes $180K), the seller would have to provide the difference at the time of closing (in this example, $20,000) -- if he can't or doesn't want to come up with the $20,000, the deal can't close.

I've thought about this a lot, but I would likely retire and allocate the following:10 mill in cashflowing NNN commercial properties (targeting 8% CoC return so 800K/yr income)5 mill in bitcoin5 mill in private equity investmentsI have a cousin with a bit more than $20M and he invests in mostly real estate and restaurant businesses.

Option 1: 21 year old signs up for Bigger Pockets, house hacks, networks with successful real estate investors, learns how to best allocate his money, after 5 years doubles his income through smart investments, by 31 is financially free from the shackles of employment for the rest of his life.Option 2: 21 year old signs up for Bigger Pockets, decides to get married and not invest because he believes in "happy wife, happy life", resents her because his money is spent on unnecessary square footage in the perfect home, multiple cars, and vacations, and he doesn't satisfy his urge to invest.Which one is best FOR YOU?  

You can not match the reduction or payment allocations simply my matching the term, as if the underlying mortgage had 212 months remaining and making your equity amount amortized at 212 months, they are two different principal applications and adding additional interest complicates the issue, interest on one note that subsidizes principal reduction on another then affect the actual interest paid, on the underlying mortgage, so who is claiming this interest amount for tax purposes, interest earned and interest paid?

I do not think she has allocated money for maintenance.

If I forecast a water heater life expectancy at 12.5 year, the monthly allocation would be 1000/12.5/12 = $6.66/month just for a water heater (a cheaper item). 

Having this powerful, pro-active tool really overcomes a lot of other shortcomings and shows me where the money in my business is actually allocated.

.), I am estimating the total budget required to fund the project is 700k.Between my business partner and I, we have about 200k allocated for a down payment and gap money for the project.Here is our issue- My partner has no credit score and next to no on paper income.

I've always used the acronym CAPEx to avoid any possibility of confusion with CAP rates ... i.e. if I we allocated a CAPEx of 5%, no one will mistake the property is a 5 CAP ;-)