For the first 60 months of the loan, you are gaining about $200-$300 in principle, rest going to taxes, interest, etc.You are probably living in a nicer part of town, so you probably cannot find a house $230k in the neighborhood you are living in.

If that is the case I assume that there is probably more than $400K to pay once you include the balance as well.If that $220K includes the unpaid principle as well as the arrears then you could have a deal that if it is really worth over $400K and a possible killer one if those other estimates are even close.

The problem with your current approach is that, in principle, you could decide not to repair the fence and just pocket the cash.

(Not as far fetched as it sounds, know somebody who recently bought a 3 unit, moved into one unit and the seller is financing to him at zero interest, 100% of payments go to principle reduction.

The property is a modest home that has decreased in value over that time by over 100k and approximately 30k less than the principle balance on the loan.

Or do I only account for initial cash outflow and cash flows without principle pay down and appreciation?

A principle only mortgage would work like this, considering you can afford about $30K a year for debt service.

Do you really want to teach your kids the principle to invest based upon the hope of "future earning potential" or the reality that W-2 income DOES NOT keep pace with inflation or commodities pricing, is the hardest earned, highest taxed income available to a person and beholds you to 1 supplier of income?

However when I make my offers as just me I of coarse include I am a lic RE agent acting as principle only.My broker did offer to pay me under my LLC but I decided there are some things I just don't want my office involved in.

Obviously my IRR has gone down as I've paid down principle in the properties.