And you can always pay extra each month which will be all principal.

The principal   never changes, it only accrues  interest.

All in costs for my house (not including the principal payments I've been making for two years) is about $10,000 (down payment plus upgrades).So, I can rent it for $1,400/month, and after PITI and landscaping, monthly cash flow is $100 or 12% annual cash flow. 

One rental there has an assistant vice principal and her kids as tenant and they are perfect.  

A skill in real estate dealmaking is recognizing the scope and scale of problems and discerning the gap between principals understanding of the severity and reality.If the knowledge gap is small, and they are super motivated, you can offer structure a deal to take off the market, manage expectation and control the asset while you solve the problems.If they're in la-la-land and think they can do better, best to decide if you'd ever want in the deal then, if yes,be patient while tgey knock themselves out mash it around.Most any real estate problem can be fixed with enough to money.

Great Benefits for you here....Once you're a homeowner, your credit gets better, owning versus renting helps your credit rating.Learning how to pre pay your mortgage even $100 more a month will help you decrease your mortgage fast, because it's being paid down with principal, not interest. 

I was just thinking you're only getting 16%, and it's over 20 months.....but you're getting principal back as you go, so yeah the APR is probably there.

I have two deals, but I can only finance one.First deal: 4-Unit Building for Buy-and-Hold-28,00 down, 188,000 asking price (about 85-90% market value assessed through comps)-owner financed for two years with refi-balloon, owner pays insurance and taxes AND will take ALL of my payments toward principal (28,800 over two years), leaving me with 131200 left on principal after the two year period-property is in a small, clean, safe, and well-to-do 'podunk' town between three of four of this area's biggest cities, allowing less than a 20 minute commute to all of them-the property will likely need few, if any, repairs and cap-ex over the next few years as it was gutted and completely rehabbed 18 months ago-I would be paying ALL utilities and internet access, at least for the first two years prior to my refinance-proforma: After Purchase Rents 3000 Facilities income 100 Gross Operating Income 3100 Taxes 100 Insurance 90 Vacancy @8.33% 250 Maintenance @6% 180 Management @10% 300 Refuge 20 Water / Sewer 100 Cable 150 Gas and Electricity 400 Net Operating Income 1780 Debt Service 600 Cash Flow 1180 During 2yr LeasingRents3000Facilities income100Gross Operating Income3100Taxes0Insurance0Vacancy @8.33%250Maintenance @6%180Management @10%0 (I will manage)Refuge20Water / Sewer100Cable150Gas and Electricity400Net Operating Income2050Debt Service1200Cash Flow780Deal Two: 3/1 for partial rehab and flip OR buy-and-hold-in a family-neighborhood with good schools (where children in the public schools get free college eventually), in the wealthiest and fastest growing of those 3 cities mentioned above-needs a 50% rehab (ALL new appliances, new kitchen, new windows, full cosmetic throughout-has a basement and space for a master bath to make it a 3/2-comps in the area run 80K to 100k-monthly rental price could be 1100-1300-buying it from a wholeseller with whom I could establish a relationship for future benefit-Estimates: Purchase Price 19000 Repair Costs 24000 After Repair Value 90000 Purchase Price % of ARV 21% 6% Agent Commision 5400 Closing costs 1200 Carrying Cost 4mths: tax 580 CC: Utilities 1000 Net Profit 40200

@Rodney MarcantelYou didn't indicate your basis in the property so the income tax exclusion for selling your principal residence may or may not be a big dealSaying that, I would still lean toward selling the property as the $2000-2400 cash flow you indicated can easily be replaced for much less than $400,000I am also answering this from the perspective that your personal residence is not personal however your wife and family may feel otherwise !

.- ~$23,600 principal balance with rate of 9%, modification reduced from around $35k- Bought at 60% of UPB, after costs, about $15k into it or 63.5% UPB.