Therefore I've got 50% of downside cusion before my principle is at risk.  

Possible book to learning common Hawaii Practices - https://www.amazon.com/Principles-Practices-Hawaii...You also stated that you may be moving to SC in Jan 2017 and I said I would put your training contract on hold until you moved to SC.Your "To Do List" Download is on this link:http://www.reiskills.com/assets/to-do-lists/The curriculum that you made an investment for does include Negotiating With Sellers, but also includes what is on this video:https://myreiskills.com/course-list/Your contract is still in force and on hold.I have many happy students.

Your 401k funds (principle + earnings) are restricted until you are 55+ (or 59 1/2). 

Conservative underwriting principles require you to use a HIGHER cap rate on exit under normal circumstances, but using an even lower cap rate than the current historically low cap rates borders on the fraudulent in my mind.

@Chris C.Couple of basic principles I'm sure you've heard before....1) Anything with the right price will sell - (Your market may be softening.  

Hello Fellow REIs,Got some landscaping that needs to be done? Got some cleaning up in a rehab? Someone to put some nails into the wall? Write direct mail letters? or do you just need someone to make those "god awful" ...

So basically the same concept, so Indiana (going by those principles) would technically be 90 pre and 36 post, or 12 a year until renewal. 

The principle of target fixation tells us that we hit what we are looking at -even if it is the wrong target. 

Where I = income, E = all non financing operating expenses,  P= debt financing costs (a function of loan constant) and NOI= net operating income it looks like this.NOI = I-E  (in other words net operating income is all operating income--probably just rent minus all operating costs --everything except for principle, interest and taxes on profits--property tax is an operating expense)NOI/ P= Debt Coverage RatioHere's an example that might help2/1 SFH Purchase price $100,000Monthly rent $1200Annual rent $14,400vacancy allowance at 5%  $720management at 8%  $1152Cap ex at 7% $1008Tax and Insurance $2500Total expenses $5380  (720+1152+1008+2500)NOI= $9020  (14400-5380)If there is no debt then there is also no debt coverage ratio No debt it cash flows $9020 per for a yield of 9.02%Now let add debt if you assume we can amortize over 30 years and get a rate of 5% it looks like this0% down loan payment = $537/ month or $6444 per year20% down loan payment= $429 per month or $5148 per yearNow I know that 0% down is unlikely but lets just assume we can do that for this example. 

The investor would receive a percentage of the rental payments once rented out as well as principle to the loan.