I'm not sure how they paid so that may or may not be a solution here...The other thing is technically your tenant owes you still, and the prior LL may be liable for fraud.

You're paying yourself back interest, the principal is out of the market and not going down, AND you're using the funds to build equity in real estate.

Lease Terms: Determine a monthly rent payment that covers the HELOC repayment (interest and principal) while providing some positive cash flow for you.                    

Trading off current cashflow for principal payoff in the future?

Wealth-drivers are appreciation, debt pay-down (ie. principal payments) and tax shielding.

Letting someone out of the lease is not the same as nullifying that the lease ever occurred; it is just an agreement that you won't go after any additional months of future rents that would otherwise be owed.

Within a few years, I was able to pay back every penny I owed my family.

Payments $492 (interest, tax, insurance) currently owe $51K.

So, if the tenant doesn't pay, skips out after damaging the property, and it stays vacant for two months it's OK because you don't owe anything on it.

If its four months from now, then explain to him he's going to be evicted, will have a record, and it will go to collections for all court costs and rent money owed, to the penny.