And I received principal of $325,000 at closing.

. ($550k * 94% = $517k) (Original loan balance of $353k) ($517k - 353k = $164k) ($164k - $127k = $37k) (Don't know how much principal you've paid down since buying, hence the assumption of about $40k). 

The repayment terms for a 401k participant loan are equal monthly/quarterly payments of principal and interest (typically prime plus 1%) over a 5 year term (longer if used to acquire your principal residence).Please note that if you take a full $50,000 and then pay back the loan, you can't take another $50,000 until 12 months after the first loan was fully paid back.  

Is the principal itself reasonably secure?

That way you can take one out and won't have a gun against your head to find a deal because principal and interest payments.Originally posted by @Oleg Shalumov:@Izick Khanimov Welcome to BP. 

While I agree it's plain as day that a fiduciary cannot enter into a purchase contract with their client, it should also be plain as day that when acting as a principal buyer (after disclosing they happen to be licensed, per usual), they can then do as they wish with their equitable interest in the contract, be it close, close and immediately resell, or assign the contract (if the appropriate clauses are used), all of which are any buyer's right.

The first 200 (as the example given) will go towards paying off the interest for that month, then the other monies that you both deposited will be a principal payment.

This is a bare bones assessment without repairs....Principal and Interest and taxes : $488  (assuming 13k down on a 65000 list price)Homeowners Ins. $33 per month (assuming $400 a year, which what it is in NJ)Assoc.

Make sure your buyer knows what is happening and they are okay with it since they are a principal in the transaction.

I do understand that they will be paying my mortgage and the principal will be going down but I still need to generate positive cash flow for it to be worth it right?