Would it be wise to heavily pay down the principal while renting?

Then whats left lets say NI = 10K (which is likely higher than CF because of the mortgage principal write down - but aside from the fact)Company 2: Set up a Property Management Company - you are the one that is tenanting the property out, you are the one managing the books, you are dealing with any issues at 12 am and all the other 'labour' / 'time consumping' work of being a landlord.

Also I like the idea of a HELOC because they can be interest only which means a much lower payment than a principal + interest payment that would required with a mortgage.

Instead of counting on uncertain appreciation to create equity, you might want to consider applying cash flow to your principal pay down and build equity.

@Juan SantosPITI stands for principal, interest, taxes, insurance. 

Is the lender guaranteed their principal back? 

End of story.On the other hand, with the option contract, he becomes a principal in the deal - with an "equitable interest".

I tend to see when investors buy properties, that first year is a favorable tax outcome due to stabilization costs and depreciation in excess of the principal paydown.Additionally, I happen to be a local CPA in Davenport and do specialize in real estate.

After some preliminary research, it appears that as long as you bring the difference between principal amount and sale amount to the closing, this would not be an issue.Are there any other avenues of sale that would lessen the need of having to potentially bring a decent amount of money to closing?

Number 1 broker rebates are not allowed in all states just some so you would have to check your state.Number 2 is this a principal broker or an associate broker/agent at a firm?