This is the debt service coverage ratio.Mathematically speaking, debt service coverage ratio is defined as:DSCR = Net Operating Income (NOI) / Total Debt Service (annual mortgage payment)In other words, DSCR is a mathematical expression of how many times the income will cover the principal and interest mortgage payment.

I don't do any manual labor. 7 hours a week managing. 7 hours a week building (researching, acquiring, directing rennovation crews, convincing people to give me money)200k cash profit annually.100k principal payoff annually.100-200k forced appreciation annually.2 million dollar portfolio so whatever that appreciation is minus inflation.

I eventually got the principal mortgage down to $60k.

The loan is structured with no early payment penalty and the application of payments as follows:All payments shall first be applied to interest and then to principal.  

The tax on that growth (not on the $400k principal itself) can disappear if you keep money in the OZ fund for 10 years.

Some more realistic numbers: Purchase Price $650,000 % Downpayment 25% Interest Rate 6.50% Mortgage Term 30 Downpayment $162,500 Loan Amount $487,500 Yearly Principal+Interest $36,975.98 Monthly Payment $3,081 Expenses (Yearly) $5,000.00 Gas Electric Water Insurance $2,000.00 Taxes $3,000.00 Other Expenses (One Time Only) $174,000.00 Permitting $50,000.00 Design Fee $20,000.00 Real Estate Fee $99,000.00 Closing Costs $5,000.00 Other Square Footage 3,000 Sale Price Per Square Foot $550.00 Total Sale Price $1,650,000.00 Building Cost per Square Foot $250.00 Building Cost $750,000.00 Holding Period (Months) 22 Holding Period (Years) 1.83 Holding Costs $250,955.96 Payoff of Mortgage $477,232.58 Counstruction Loan Interest Rate 10% Construction Loan Prinicipal and Interest $893,198.23 Construction Loan Interest $143,198.23 Total Profit $28,613.22 ROI 1.8% Annualized ROI 1.0% Interested to hear what you guys think of the above numbers.

Respective of REI, could this equate to adding principal paydowns (re-amortization) as part of a modified strategy that might better position us as investors vs buying another property at this time?

I rented for $1,500 per month against a $1,580 monthly payment which includes principal, interest, taxes, and insurance. 

I'd say yes, with an equitable interest in the land contract, you could include principal paydown so far on your NW statement. 

Some of the numbers:Paid $680kcurrent value $640kCash Flow +/- $0 (it doesn't cash flow)Principal paid down $1k per monthEquity $196kIf I sell the house I will walk away with about $160k after fees etc.