I have 8 financed properties and fall within that difficult band of 7-10 financed properties with Fannie Mae that require 6% reserves of the unpaid principle balance. 

I agree on the principles but when I am asked to have a better chance if I can swing 2 properties in short order and look at the prices being more and more in the $130k - $200K area, it pretty much eliminates me and I also see issues with reaching the 1% rule at those levels.

Classes were focused on principles, law, finance, management and appraisal.

If I work out an agreement with the homeowner to modify the note to receive payments over 30yrs or $80K (principle), how much do I report as income this year?

Per the California Bureau of Real Estate requirements for sales agents, you will need to take:Real Estate Principles, andReal Estate Practice, andOne other course from the list on website.

Once a loan is paid off you have your principle back, but you no longer have any returns at all.Interest only hard money loans are different.

I think you're all nuts....Lastly I definitely don't set aside the pre paid rent, I invest it and make more money with their money.I agree with you in principle, but I'd caution to make sure some of those investments have some liquidity.

Not worth making a decision based on the principle of the safety issue being stupid...which it likely is..... we aren't taking big $$ or tenant asking for cosmetic repairs etc.The safety issue is stupid.....but to me, its worth $100-200 to make the issue go away now and not ever to have to worry about it again

If someone is telling you they don't rent to black people and they use "(racial slur) migrant laborers" and that bothers you, then the only decision to make is whether YOU value your principles over saving a few bucks. 

"I am not so concerned about the return on my principle as the return of my principle."