Borrow a million dollars and have someone else pay it off"Remember you're averaging $50K/year in principal reduction and you just created $400K in equity.  

So for instance, your PITI (Principal, Interest, Taxes, Insurance) payment on  property is $1,000 a month...and you rent it for $1,250 (1.25 DSCR) then you should be in the clear to borrow for the next property.

All it discusses is the principal balance. 

If you consider the principal repayment is a forced "savings" and you reduce that from your monthly payments, chances are it is actually cheaper to buy.  

First the tenant is paying my principal down (at 5.75 on 100K at 5 years my principle is 89,605). 

The cash value of life insurance offers principal protection and good returns (6-8%) and the cash value is liquid via policy loans or loans secured by the cash value from other lenders who take an assignment of collateral.As I've stated in many other posts and in my blogs, leveraging high cash value life insurance allows investors to put their money to work in two places at once.

Aside from making bi-monthly payments to pay on principal and pay off loan, will our home improvements also go towards that 20%?

Current remaining principal balance is $62,178.13.Here is my question.

@Percy N. yes that's why I set the PO Box up with street addressing, and forwarded both versions of the address to all the principals in the transaction. 

Your numbers reflect a 70% LTV cash out refi.CASH FLOW:  Your monthly cash flow does not subtract the principal payment.