Everyone will hopefully find their fine balance of: - liquidity and liquid reserves - asset/equity growth goals - debt management and cash flow management by strategically managing loan terms, notes payable, allocating, shifting, and replacing the more expensive debt instruments with less costly and better terms (fixed, no balloons, non interest rate sensitive) - tax planning - recoop losses from your financial bucket to be redirect to higher purposes or returns - estate tax planning - if you're over 5.34 mil and cannot siphon off your wealth quick enough through the 14k gift allowed annually per person- risk management - since each person has their own risk tolerance for each of the above categories To focus on just equity growth with out considering the other areas of planning may be very risky but thats just my opinion.

Well, of course the note and the mortgage are two different instruments.

The Bigger Pockets community has been instrumental in my investing growth!

This is the best instrument to transfer title.2.

. :)That's kind, but I'd still be willing to bet that you've been more helpful/instrumental to my business than I've been to yours!

If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument.

From HUD themselves... 4155.1 4.B.2.bFHARequirementfor EstablishingOwnerOccupancyAt least one borrower must occupy the property and sign the securityinstrument and the mortgage note in order for the property to be consideredowner-occupied.FHA security instruments require a borrower to establish bona fide occupancyin a home as the borrower’s principal residence within 60 days of signing thesecurity instrument, with continued occupancy for at least one year.The entire text of the HUD requirements can be found here...http://portal.hud.gov/hudportal/documents/huddoc?

Most of the changes will be management changes, which will cost me more time than money.The second mortgage is just a security instrument.  

The only way it doesn't apply is if the lending instrument is an "open ended" loan. 

There will be costs to enforce the security instrument as Mike stated.