Can you reinvest it with a higher return with less risk?

does your lease say he has to return to the condition on lease signing ?

Still a good deal regardless, looking at a 12-14% cash on cash return. 

Give him a return between that of a conventional mortgage and that of a hard money lender (HML).

Just due your due diligence on your partnerPerforming Notes are more passive than rental property and you can get returns slightly above a rentalYou mentioned $80k and 600-700 month = say $8k a year which is 10% return.

My wife who is also an RE agent was contacted by a friend of ours that asked about opening a HELOC in order to purchase a property and try to flip it at minimal cost for maximum return.

and will reply to your offer letter by either calling you or signing the actual offer and returning it back to you ready to move forward.That's how I find the "motivated sellers" ready to deal.Then, once I received hundreds of these offers back, I then examine the property specifics and work out the numbers to see if the deal is good or not based on the numbers.Also, your offer letter will state exactly how much you're willing to offer to the owner so you are already in a position to make money should they respond...and some of them will. 

Just be careful that it could subject you to an additional income tax return in each of those states as well if you decide to do that.

It’d s guaranteed return on your money.My opinion is you want no other debt besides mortgage debt.

The difference is that with the Triplex I don't have as high of a future value as I do the 14 plex.My 3rd a 22 unit - This has the highest return, This is my best deal to date, and I would say that is a result of my previous 2 deals in learning better planning.