In the event you end up controlling the property long enough for your tenant to buy it for you, that's fine.2 -  The most important Golden Rule of "How Money Works", is this:  Never, under any circumstances, ever...."

What they neglect to realize is that most of the run up was just recovery from 2008 and that some markets are only now reaching their 2006 peaks. 

Whether i Did would depend on he specific circumstances.

But there may be other circumstances at play.But from what i see you've got the scenario that works totally already in place. 

That is not to say that principal pay down could not be an intelligent move in certain circumstances, but its a whole different can of worms than stock buyback.

When we began inside the units, we discussed they had been badly neglected by the prior owner, and we really had no option than to 60 day notice some of the tenants in the units that were below, what we and our property manager considered to be, a standard of living.

In my experience most 2% properties are in the hood and and the only way to make it work is neglect the property for cash flow.

I just bought a 12 unit under similar circumstances.

As far as I am aware it is only mortgage fraud if you misstate your income or circumstances during the mortgage application.

What circumstances would cause you to modify your approach?