But the way I am thinking is that ~$950 is going towards principle in my monthly mortgage payments which in long term is coming to me anyways and I will be taking ~$750/month to my pocket at the end.

I've been with the same company since college (8.5 years) and I make a decent income.We have some money saved in the bank ($7k) I have company stock in the amount of $4k, and have a good amount in my 401k.

It doesn't appear there was any subordination, as they list the first mtg as having a principle balance of $86k and the second mtg at $299k.EDIT: in looking at the last mod, the heloc was increased to $200k. 

Is it better to do fair market value but then work in some sort of principle and interest payment like a standard mortgage?

I did, however, end up turning more towards stock market investing, and have been successful. 

It does not matter which market they specialize in: Options Trading, Stocks, Bonds, REI, Futures, Commodities, Etc.Keeny Estes' comments regarding investing are very thought provoke.  

Any lending program involving the transfer of title/ownership of your securities to any third party as a condition for funding, is by definition exceptionally risky and according to IRS rulings in 2010 and subsequent litigation against "nonrecourse stock loan" providers, a full sale subject to capital gains taxes at the moment the securities' title transfers to the lending organization.Only two types of securities finance are legit for real estate purposes, and all are licensed SIPC/FINRA: 1) A margin loan, which caps at 50% LTV and averages about 6% interest, based on a single stock; and 2) a line of credit, based on the average value of a basket of stocks, with LTVs typically up to 98%.

Mid thirties - Almost all invested in the stock market.

And would you be more inclined to purchase bonds or dividend-producing stock?

If you have your base money in the stock market and things go south, your entire real estate portfolio could be in jeopardy.