It is not a fixed lease in that he pays whether it is rented or not, but that he takes 10% of the rent and future increases (n lease up fees). 

Basically if 75% of the rent can cover PITI it shouldn't increase your debt to income ratio. 

Some of those include tax write-offs and increased return on your investment.

@Ashish AcharyaYes we will contact an attorney, I have some rentals now and am looking to increase my portfolio.

Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.amortization scheduleA table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan.

We figure we'll at least get close and we added a clause in the lease stating rent increases will happen annually with increased utility bills.

That's going to happen and in most instances it cant be stopped. but there are well known PM on BP that increase these prices more or inflate others.

Now even with appreciation and increased rent inflow - it would still take above 10 years to pay off the loan/interest expenses.

As long as rents are increasing due to a lack of development, rentals will always be needed. 5> Commercial and mixed use (commercial below, apartments upstairs) property.

The following year when rents had been increased significantly she was less interested, but still called for several years after that.