Tenants can pay down principal, and3.

As an occupant in one unit you will be eligible for owner occupant conventional financing (best rates), be able to deduct all the interest paid, and your tenants will likely cover most if not all your mortgage costs, while you are paying down principal.  

Learn how to buy properties off-market by approaching principals who have not taken any substantial steps to sell.

They've been profiting by collecting principal+interest for the life of the loan, and any fees assoc. with foreclosure will likely be recouped during auction.The way in which we may help the seller depends on the situation.

I pay 15% more on my personal home, all principal reduction.  

**UPDATED: I see what you were saying now, that the market rents are above some 1% rule but are in-deed $5k/mth...I hope :)**2) Insurance seems low if your property taxes are $5,400/yr - you didn't mention the state this property is located in, so I guess we have to use your number but I would do the "Discount Double Check" on that number3) P/I I assume you are speaking of Debt Service Principal and Interest?

I do my own investments and work with commercial clients one on one as a principal broker.As I get older I enjoy simplicity in my life.

If he didn't pay it off you can often work backwards from the info given in the registered mortgage to figure out approximately how much he still owes on the property, assuming a reasonable interest rate for that year and also assuming that he didn't make any extra payments of principal in the intervening years.You might also want to access the tax collector's website in that town to see if he's behind in his property tax payments.  

If you want to be cashed out for the full principal amount , perhaps the better route to take here is to make a loan with a balloon payment at the point where you need them to refinance and cash you out. 

Offer to give the Borrower a letter which details the Original Balance, Principal Paydown and the 105 on time payments.