An all cash, no loan transaction).For this reason, I calculate both cash on cash vs. total yearly return on my out of pocket money (which includes the down payment).Also note that usually you pay the first month of the mortgage in addition to the down payment, plus the whole of the insurance and (some) taxes at closing.

Trying to hone in on one area in the country that has good cash-on-cash value + solid economic engines + good neighborhoods (for lower headaches, obviously).

I think this would be on the lower end of rent at least for the time being.  

So the bank gives me a mortgage on the house an I use that money to pay the lender back an now have a much lower interest on my money.Am I missing anything.

They can also close quickly, may be a better value with lower fees and interest, and potentially more flexible on terms than hard money. 

Pretty clean and documented transaction there.

Have you looked at refinancing to lower your mortgage payments? 

And you need at least 20% equity as conventional loans are usually 80% LTV.The benefits are getting a lower interest rate, at least with the rates we have right not, and getting rid of Private Mortgage Insurance, PMI, which is about $220 a month for me.

I also think the rents are a bit lower than they could be.

I can give you several good baltimore attorneys that can write up loan docs for you if it is a commercial transaction.