Currently in DFW (assuming, because MKE may be similar in this regard), I would find it a surprise if you cover your cost of living completely (i.e. living for $0, or getting paid while in the unit) at this time of relatively higher (read: historically AVG) interest rates compared to 2-10 years ago.  

I don’t see the sense in paying off my own house at presumably low interest rates, and exchanging that for a higher rate, variable interest line…unless I have a really good plan for not losing my house.  

Therefore, even if I obtain a good value for the surface yield, it's possible that the Net Yield is unexpectedly low due to unexpected expenses.In Japan, the ideal yield varies depending on whether the property is new or used, the bank's interest rate at the time, and the real estate market conditions, but if the real yield on any property is 10% or more, the property is reasonably profitable and the cash flow is sufficient in many cases.

Our strategy is to improve the property and raise rents above the HUD rate. 

Just look up amortization schedules, and fill in the blanks for:  principle, interest rate, term. 

The school as a whole has struggled and if the school is struggling attendance drops.

I'm curious about how they are able to convert your business credit cards into a cash line of credit while avoiding the high balance transfer interest rates.  

In my mind, it is simply a hurdle rate.

So we've got a return of 23% on our first and a return of 175% on our second.TL;DR - Are owning free and clear assets better than having high rate of return? 

I am going to give it another 12 months to see if rates come down, as my first mortgage has a 6.25% rate and my second has an 8.125% rate.