Also, I doubt the cash flow on your example would remain a measly $4000 per year.

Working with a local lender I'm completing the process of doing a cash-out refinance where they pay off the balance of the original 2012 loan and then give me cash on the difference between what is owed on that loan and the current appraisal - minus 20% equity to remain in the property.  4.75% 30-yr fixed.I'll be able to draw over $200K in capital that I'll immediately then roll into a large self-storage facility purchase (with a partner) as my half of that down payment.  

The only thing I am unsure of, and you want to consult your CPA or whomever it may be, if you can write off the remaining balance when you sell or 1031 in 2-5 yrs like you mentioned.For me, my strategy is long term and I have extra cash on hand, so I personally always take into consideration of buying down points.

.- Default interest rate of, say, 25% kicks in thereafter- Loan remains unpaid for the following, say,  18 months before the crowdfunding site is finally is able to foreclose and sell the property but the Property can only be sold with enough cushion to repay investors' principal and only a little extra interest, but not all.  

The most successful remain flexible.

. - Investor pays 50% of acquisition and you (or the LLC) mortgage the remaining 50% of acquisition cost.- Investor funds all rehab and holding costs.

I owe about $115,000 @ 3.25% with 12 years remaining.

I have a house and owe about $115,000 @ 3.25% with 12 years remaining.

If the landlord doesn't comply, the tenant can go to court and may be entitled to three times the amount of the security deposit or the remaining balance to which the tenant is entitled after lawful deductions with interest, plus court costs and reasonable attorney’s fees.

When you deduct a 10% return ($833 for every 100K in equity) from your monthly rental income on the property what is your remaining positive cash flow.