You are paying down principal and that goes into your ROI calc.

you just made my day.. thank you for the kind words.Renovo is for real and those I know in Chicagoland have used them one of my clients used them or uses them and I was a partner on one loan they did for us.. ( silent partner) I met one of the principals at a Christmas party in Chicago one time or no it was an open house. 

Provide a short term mortgage to someone that will use the 20k to buy a property and earn 12% (or more) on the principal balance.

Instead, a lender will want to see that the property currently brings in (or has the potential to based on market rents) enough to cover the monthly principal, interest, taxes, insurance and HOA (if applicable).

DSCR loans typically have higher rates, pre-payment penalties, and may not let you pull as much money out as you would like because they will be based on 2 factors: the appraised value of the home and how well the rent coming in can cover the PITI payment each month (Principal , interest, tax, insurance). 

The real numbers are more complicated because while we count mortgage payments, the reality is some of that is for interest and the rest is against the principal, so really some is going to you in the long run, but is currently tied up as an expense. 

Overview:Address: 3960 Pleasant Shade Dr, Atlanta GA 30340 (Have owned for since Nov 2016 and depreciating)Details: 3 bed 2.5 bath 1,847 square feet (None of the photos online are current)Principal Owed: $232,000Mortgage Rate: 3.375%Monthly Payment: $2,010 + $250 for landscaping and pest controlCurrent Rent $2,450 a monthProjected New Rent: $2,750-$3,000 a monthPotential sales price $450-500k. 

He is a mentor of mine as well, and is not so interested in making money but rather he told me that he likes to see 7% in his passively invested accounts, so I offered and he accepted that I would pay him 8% APY On the principal that I borrowed. 

Many threads on here about being unable to cash out, losing principal, not getting any updates about their funds, etc.

I don't know the numbers on your property, so I'll create a hypothetical:Assume your principal and interest on a $300k loan is $1,263.You're sitting on the potential to get $155k (tax free, btw), but the rate will be 7.5%, taking you're principal and interest to $2,100.Yes, it's $900/month more, but you have $155k of tax free money in the bank.