If his contribution is $60,000 then the distribution should be proportional to the  investment assuming he is taking the same amount of risk.

As you can see, the principal is only decreasing by about $40/m at this stage (but ever so slowly, increases as a proportion during the life of the loan, so that in another 231 months, the amounts are reversed, leaving only about $40/m for interest and the rest towards the principal, finally*).

We have bought 7 houses, 6 rentals and every closing has been an adventure of ulcer proportion.

Total payments made actually equal the purchase price)* The amount paid in rental payments is an excessively large proportion of the total sum required to secure transfer of title to the property.* The taxpayer can acquire title to the property under a purchase option price that is nominal in relation to the value of the property at the time the option may be exercised.* Some portion of the rental payments is specifically designated or readily recognized as interest.* The sum of the rental payments and purchase option approximates the original purchase price plus interest and carrying charges.* The lease requires the lessee/buyer to make substantial improvements to the property.So, yes, you can do a lease option that the IRS deems is a disguised sale (which most lease options are, including John Jackson's) and have it fall under Dodd-Frank. 

Traditional Financial Planning advice goes out the window when you start investing in real estate.Questions for BP:- What proportion of your total wealth is held in real estate?

I do the math and am maintaining $25k reserves (which will grow proportionally with my portfolio).  

If he wants ongoing drip feed (net) income, then his proportion should be much closer to 0% than it is to 50%.What you could have asked is: is my friend being too greedy?

A good proportion of the ones that invested before lost nearly everything during it.  

This is just my observation.Wouldn't owning 15+ homes just increase the risk of evictions proportionally?

While your insurance and mortgage payments may have a variable rate of cost proportional to your home value, certain repair costs will have a more fixed rate cost, and thus decrease as a percentage of the home value as that value goes up.