Downside is if you have more than a month in vacancy you lose that income and it will take time to recover that loss. 

Hopefully a quick question.

I offer an easy-out agreement to the owner, but don't want to lose out on monthly fees for longer stays. 

I was also an adult in 2007 and saw people lose their homes and investors who overleveraged lose their investments when tenants didn't pay rent.

Read Beginner’s Guide to help you get started: http://www.biggerpockets.com/real-estate-investingI hope BP helps you achieve your goals! 

Snowball -     Where if I were to payoff a single home with this "extra" money it would increase my cashflow by 8500/yr (but I also lose bank principle pay of 2000/year) so the effective added cash flow is ~6500yr.By the time I add Principal paydown and "slight" appreciation the add homes method seems to be the clear choice.        *** I would love to hear your comments on a debate in favor of the snowball.**** At some point, future, I think I will want most all properties paid off so I can have great flow with minimal stress and maintenance numbers but kinda feel growth phase is still smartest as of now. 

Bringing income total to 4600-5200 to cash flow around 800 before doing a hopeful refi if rates drop 🤞🏾.

@Chrissy Gray - Sounds like the father has the most to lose. 

Hopefully this type of loan helps me out.

Hope that helps...and I will stop blowing up this post now. haha