Compared to the $865 in rent we were paying in rent previously we were still saving money while having others pay down principle.

Don't lose sight of the fact that people often make agreements to purchase redemption rights before the auction.  

You have principle pay dow, tax benefits, etc as mentioned above.  

Why not pay principle only payments using a LOC every couple of months that will lower the principal faster and level of interest you end up paying on the back end? 

I will simplify it some...you have to include principle reduction in your calculation of return...cash flow is only part of the equation.  

If you lose money every month but make it up at tax time by taking a loss after expenses and depreciation and you knock down a decent amount of principle each month, it might be a decent way of slowly acquiring a paid off townhome in a close in area in a great city.

$53,578.51The formula in excel is =CUMPRINC(rate,nper,pv,start_period,end_period,type)Rate = .065/12 (annual rate converted to monthly)Nper = 360 (# of months for 30yr loan)PV = 80% of $79k = $63,200Start = 1 (from month 1)End = 120 (to month 120, 10yrs)Type = 0 (don't ask)This will give you the amount of principle she has paid.

Since then, my wife and I have worked slowly and patiently to purchase 7 homes since December of 2012, we flipped one, live in one, rent five, and have a our first duplex in our sights if we can put the numbers together by the end of this month (April 2016).I work a day job that pays our bills and my wife manages the business (she has not held a "paying job" for about 2 1/2 years).I've lurked here a little and decided it was time I joined the discussion and at least said thanks for the great atmosphere and encouragement displayed by you all.We believe it is a missional calling to do what we do because we invest in people by buying and fixing houses (from the local contractors, friends who need part time income, and the renters who might not otherwise have a chance to live in a quality home).  

So 2015 was a pretty awesome year but I figured I'd make a post to keep me honest and pushing for the remainder of the year, as I had a month vacation that slowed down the progress.Deal 1) Bought a house for 73.5k at auction sight unseen.  

I assume that would be 50% the principle balance at the time the joint mortgage was paid off.