If your plan is to increase value and sale after 5-6 years anyway then the principal pay down won't likely be a big part of your business plan.

If in 10 years the rate is 11%, you will have paid down your principal balance significantly and likely inflation will have happened, so your rents will have increase (and expenses), resulting in still solid cash flow. 

We increased the NOI from about $15k to $17k as well.

Also should i look at multiplexes to increase income or start with a single family home?

I’m considering investing outside of the bay area since values have increased tremendously and I can’t see how it could go much higher but I’m looking for your advice on other up-and-coming markets preferably in the western US that may see significant appreciation in the coming 5 to 10 years.Thanks!

I'm sure that some will not be able to pay the increased rent or will not qualify to rent under our company's guidelines.

We are both searching for avenues to increase our active and passive income in the Denver Metro area.

I know this is AFTER you are already done with a client (since you work on the front end of the loan), but if you contact the loan servicer holding your note and ask them to remove mortgage insurance (knowing that values have increased), they often refer to Zillow to give you an answer. 

This number isnt taking rent increases into account.Looks pretty ok on paper (unless I'm missing something and it doesn't)The breakdown for your first example would have the sponsor (who I'm assuming is me in this scenario) receiving:Acquisition fee: $1,750Asset MGMT Fee: $672 80/20 split when sold in 10 years: around 25KAnd since this is a smaller deal a more basic approach of 70/30: 4895/2098 or 8% back to investor annuallyDoes this seem to check out?

There was a premium price on this property though the plan is to hold long term and rents will only steadily increase so we are happy.I appreciate all of your input so please keep responding.