You are making money on it, the principle, but you can probably do better by selling and grinding the machine.Could be worse, I have a condo here in Indy in a bad area. 

This allows me to make a huge dent in the principle of the loan over that first 3 years (about 25K if I maintain my current payment). looking at the worst case scenario if over 8 years it grew 1 percent every year to 6.75% my payment would be about 50 bucks more than my current payment since it has a new amortization every year and the principle is lower.

A total of $301 is going to principle and $458 is going toward interest.

So part of the game plan is doing a flip a year after I get my principle residence.

Servicers also provide the amortization, calculate interest, pay-offs, additional principle payments, send out monthly statements or coupons and do the year end IRS notifications. 

(sooner if i pay more to principle).the 1 brdm 1 ba would easily rent for 325 (up to 400) and the 2 bdrm 1 ba for 375 (up to 475)so i'm looking at bringing in 700/mo minus the 350/mo to buy it, leaves some for emergency fund and the rest can go to principle. once it's paid off, it will be mostly profit.my first deal was a 50k house which i got for 10k (over 5 years at 175/mo with $25 down)-i find deals all the time, i just have to pass on most for lack of capital. hence only 2 deals in my first 2 years since seller financing is scarce.but if you have cash, (or down payments) i can hook you up.if you'd like to work together on some hoosier/buckeye properties, let me know.whether you'd like to partner, or just have me feed you some wholesale (contract assigns) i'd be happy to help out.

Avoid the problem, deny them based on objective information and move on

Don't get shiny object syndrome like most and jump from thing to thing without becoming great at anything.

Not yet 30, he now owns three houses, including his principle residence (which is no longer that first house.) 

Excellent set of posts here.Cash on cash return will vary greatly depending on what city and type of property you are buying.  50K house vs 1M apartment building, downtown Detroit vs Royal Oak vs BirminghamCash on cash is a great way to compare a group of properties to make sure you pick the best one and to make sure that your money is working hard for you like Joe mentioned.With that said, I like to see at least 12% cash on cash, 25% ROI when you add loan principle paydown, and some sort of value add to increase the cash on cash (below market rents, above market expenses, etc.)