However, the underwriters of the new carrier observed and formed the opinion that the previous insurer had undervalued their prior coverage; we suspect to give the illusion of lower premiums.Perhaps others have had better experiences with NREIG, however I cannot recommend them.

So the seller has no illusion that the optionee is required to purchase his property, he’s merely getting some cash for giving the optionee the RIGHT to purchase within a certain timeframe - IF he chooses.I think those that are both experienced AND well capitalized have a chance to survive with either of these two scenarios, or perhaps another that complies with the new rules in effect.  

If you pay it down, you are using your cash flow to pay down that debt, so that "higher cash flow" is an illusion. 

I think 10% is just an illusion of safety for you.But that is just me.If I had a deal, I rather tell the seller I am cancelling the contract than giving in to greedy people (not accusing you).A good deal is a good deal, and there are legit ways to handle risk... basically eliminating it as much as you can.By doing due diligence on the house.All such things like "skin in the game" does is create a false illusion of safety.This because, me ALSO having something to lose is not making the deal any safer.

It's an illusion.

If you just buy them to hold, however, any return on investment is an illusion.  

Reality is merely an illusion, albeit a very persistent one."  

As high of a return as possible is an illusion.

"Reality is merely an illusion, albeit a very persistent one."

What's the use of this illusion of higher CF if all you're doing is repaying yourself?