Below are two possible scenarios:1. 15 year note: Conventional wisdom says that paying down the note sooner would save interest and of course lead to a more full cash-flow from the property sooner. 2. 30 year note: However, currently the property sustains itself in that we do not pay any interest on it at all (out of pocket), the tenant does.

It would be delusional to believe that those 30% annualized returns are sustainable.

You have not spent this 10%, it is not a sunk cost, and sunk costs have nothing to do with this discussion.If you truly believe that your 25% return is long-term sustainable, then by all means, do your withdrawal, pay your penalty and reinvest it.  

I'm not a LO so I don't know the full details.My biggest challenge was finding a contractor that would be approved by the lender and also could sustain the long period of time to get paid through the draws.

If your associated added a person to the LLC to use her credit score, this is not a long term sustainable strategy.Once the loan is made, it will show up on her credit report.

;p  you can say whatever you want, unless the accounting is cooked or it's in rural area where booking is only few times a year/not sustainable.

I expected to fork out quite a bit of money to get the first one going, but from here on out the first home and any additional need to be relatively self-sustaining.

I was wondering where the best potential for "sustainable" cash flow properties.

The one that is F&C needs to be able to sustain my wifes' lifestyle!

The other entity (or entities) hold rentals that are leveraged properly and spit off a sustainable cash flow that increases over time.