It's going to be a money soak and large loss because it seems like the principal wants to outsource eyes, ears, and skills and is willing to pay someone else to bring their own people which costs 2-4x as much as having some of your subs and eyes on the job.If I had other pressing business concerns, I would sell all of the properties in a portfolio sale, bank the money and repurpose it, and let someone else do it all.

The propertyvalue would increase 200k in theory because rents went up 10%.just looking 5 years out90k in cash flow155k in principal pay down200k in appropriation 446K gain in 5 years.What am I missing?

Hi Zak-Great question.It sounds like your credit union is offering you a Home Equity Line of Credit as they do not expect principal payments and your primary bank is offering you a Home Equity Loan.Personally, I don't like having to pay on an equity loan unless I use some of it and only pay on the part I use.Although, this is a personal decision for you.If you make investments that provide enough cashflow to pay the principal and interest to your primary bank on the equity loan it doesn't really matter to you as others are paying it.Another consideration is the amount of dry powder available to invest.

Does that mean net cash in your pocket after interest, taxes, principal, insurance, repairs, maintenance, credit card fees, etc.?

Foreclosure the advances, charges and possibly deferred principal balance can all crush your goalsRemember the 2nd may also bid their full amount owed as well.Yes money can absolutely be made but it’s also very risky

Lender will grant the first extension with a 20% principal pay down.  

I'm the principal broker for Hardin Realty & Property Management -- We encourage agents to invest and complete personal transactions!

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

I've been house hacking since 2014 in a duplex that I have a 3.8 mortgage on with about $175,000 principal balance.

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.