Since those payments pay down principal at different rates depending on where they are in the amortization schedule you have to align that or you may end up with one loan coming to term creating a pseudo balloon event in the other.5. 

I've already talked to a friend of mine who is a  principal broker about finding us a cheap duplex that we could live in and rent the other side.

A $20k pay down on the loan won't create more cash flow right now but will increase the principal pay down (I'm assuming this is a home loan...)  

Part of the payment you receive is principal some interest.

After that date, it was a rental property until now (we close mid April).I am under the impression that if I qualify for the section 121 exclusion, I would also be excluded from the CO 2% withholding by filling out a Colorado DR 1083 and marking principal residence.

Lenders typically like to see liquid reserves of around 6 to 12 months PITIA (monthly payment of principal, interest, taxes, insurance and association fees). 

As a principal you do not need a license; when you act as a facilitator you do.And @Chaz Reid I have yet to meet a wholesaler who performed any faster than a traditional sales agent.  

FNMA currently requires that you have at least a 620 credit score, and the following minimum down payment from your own funds (no gifts): 15% down for the purchase of a 1 unit property (or 25% down with an ARM)25% down for the purchase of a 2-4 unit property (or 35% down with an ARM) 75% maximum LTV (loan-to-value) for a rate/term refinance of a 1-4 unit property (or 65% with an ARM)75% maximum LTV for a cash-out refinance of a 1 unit property (or 65% with an ARM)70% maximum LTV for a cash-out refinance of a 2-4 unit property (or 60% with an ARM)You must also meet the following minimum reserve requirements: 6 months PITIA (Principal, Interest, Taxes, Insurance, Association Fees) for the Subject Property.2 months PITIA for each second home or investment property currently owned and financed. 

I see my new 20 year low interest loan is retiring big chunks of principal each month.

So, I want to apply the same principal to the next property, and the next one until I've built up $100,000 to $150,000 in cash that I can use for flipping or buy and hold.