My client intends to pay off the principal, interest, fees... all at the close of escrow.

Monthly Expenses and Cashflow:- Principal, Property Taxes, Home Insurance: $1,446.38- Property Management (12% of Rent Price): $358.08/ mo.- Monthly cashflow: $1,179.54Obviously these are rough estimates, but I feel that I've given myself enough buffer throughout the calculation/ analysis that if there are any unexpected expenses, I'll still be able to cover them and have a property that Cashflows a decent amt each month. 

.- Principal debt paydown: tenant paying off your loan.- Cash flow.Once the above are all added up, your true Rate Return will by far exceed your returns with stocks.Now regarding the different type of real estate, that depends on a lot of factors and mostly on your financial goals and where are you in life today.

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You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

On top of it, reaching 20% down through principal reduction and appreciation could be a decade out.So you should probably look at the project as a long-term partnership with you co-owning this with your sister for the foreseeable future.But these are great opportunities. 

The idea is to limit your targets to just a few with multiple nasty problems that your principals recognize are bigger than they can deal with, hence ripe for you to acquire or control. 

When you refi in a year, you can always put more down towards the principal if you want.

I know i can have my employees write contracts I dont personally write them. but we are also not doing this contract for compensation we are buying it as a principal just like you would be doing Mike for your students. 

I get that it's the equity you are getting in the house (you only can include the principal you are paying down) - but that feels as if it should be included as a part of your investment.