@Alecia LovelessOne thing I'd like to add to the discussion is that the drawbacks to having a tenant like this in an 8-unit usually far outweigh the advantages of getting rid of them quickly and effectively.

The difference is that she is receiving a cash flow from the properties that she will plow into additional houses, just like Bob Safe, but she also has a mortgage payment before cash flow that is enhancing her net worth through principal paydown.

Only $4K in principal yet $8.5K in interest.

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

So if hit 3 out of 4 - appreciation, principal pay down and tax benefits that was acceptable to me. 

I dont understand why CoC doesnt include the principal part of the mortgage payment.

But to touch on the earlier point, physical asset investing under the nature of debt, efficiencies of scale, tax benefits/drawbacks, and the power of delegation before you dip your toes in.

Yeah, I see the drawbacks too.

When the property sells, They get a check at closing for their principal and interest.I ask them if they want to loan their money on another property.

The thing is the real rate was between 9 and 20% a year because of the structure of the loan, whereby the principal would actually increase over time but it wasn't mentioned in their marketing literature.