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

We have a property in sight, and are thinking of using a Hard Money Lender for the first time.  

I help by keeping my expenses low and my sights high!

Probably about 2-3% per year with appreciation and principle mortgage pay-down like you.  

BTW, net income equals income minus all expenses (excluding capital improvements), minus interest expense on loan payments (can't deduct the principle payments) minus depreciation, (about 3% of purchase price).  

I love this sight.

That's why it is even more important to do due diligence when buying out of state sight unseen.

Hypothetical Scenario300,000 sell253,000 borrowed = 85% 300,000 sell-18,000 commissions @6%-8,000 interest est -253,000 principle payback-----_-------21,000 profitSell for 10-15 k less than expected:-( not much room for error, unless he is borrowing some of his "profit"

@Andy WuI would probably take the capital you want to use to pay down principle and buy another property. 

See the principles below.