You created a financial model of what you want to happen to your money and investment, but the actual process makes no sense to me at all.

The principle of a loan is a liability account (money owed) so it would go on the balance sheet.

There are some exceptions, but they are rare, they have access to funds, and they typically built their empire when the timing was right and got lucky.Likewise, it's not often that you can buy a house and sell it for big money six months later.

Ensure that you are using a rent payment software program that records and categories rent and money charges and payments, including dates, payment amounts, and balance owed contemporaneously with the transaction.

They have good credit and generally manage their money well.

My seller has now put money down to buy a triplex that FIG is building in American Fork, the cap rate is 7%.  

money is expensive and prices are high so if you can find something that works in a area your confortable owing then do it. if you can't find something then hold off until you can and keep saving.

Keep in mind, with hard money the down payment tends to be a bit more than traditional loans. 

I’m just not sure if my first REI should tie up my money in a long term asset (appreciation) vs investing in a quicker ROI (fix&flip, BRRRR, wholesale, or simply cashflow)The typical down payment in Denver metro for single family is around 80k (which I don’t have in liquidity).  

They had the money, the will and the marketing genius to pull it off.