I plan taking this same simplistic approach to REI.Great analogy Marvin.

Now you sell the property for 200k and you pay off your loan and you get your 10k back in your pocket plus 50k more profit.Over simplistic example but I think you got it now.

Amortization in simplistic terms for this discussion:  20 year amortization means they are basing your payment amount on a 20 year term.  

It seems much more simplistic than the leases I'm grown accustomed to using.

@Immanuel Sibero Looking through your profile that sheet was probably a little too simplistic ;)I would still love some feedback if you have had a chance to look!

@Nghi Le; I think its overly simplistic to assume prices have to go down just because they've gone up.

The most simplistic strategy would be to have the original HELOC get you property #1 which is refinanced to get property #2, which is refinanced to get property #3, etc.  

It will beat inflation to death and the mortgage (leverage) will allow you to control more money AND have tenants pay it off for you. 2 very simplistic and not very thorough explanations, but that would give me carpal tunnel.

I think that's a simplistic approach that results in you dumping on some really good people - like a lot of the coaches I know.  

So most simplistically, my first exit option is not to exit.