I agree with marcus, keep it very simple. you could have a loan from him that pays him principal and interest or interest only. you can also have a side letter agreement that you will give him X percentage of profits from the sale. 

Definitions:Goal- A time bound broad general outcomeObjective- A specific measurable outcome that supports a goal Strategy- A broad plan for achieving an objective (and the goal it supports)Tactic- A action used to implement a strategyPolicy- A guideline for making decisions: who does what and why, a principal of action ensures consistency and compliance with goalsProcess- A series of actions to achieve an end (who, what, when)Procedure- step-by-step directions for accomplishing a particular action

The only way to remove the PMI in the first 2 years is direct payments to the principal, or capital expenditures that would increase the value of my house, based on the price at the TIME OF MY REFINANCE.

What they don't advertize is the fact that the principal increases over time, whereby the real interest rate is closer to 20%!

When you move into DSCR loans, you are looking at 20% or more down, and you can use all of the projected income to qualify however it will need to cover its expenses, so principal, interest, taxes, insurance, and HOA or property management fees it may have.

You will then get 100% of the appreciation, tax benefits, loan principal buy down and cashflow.

Since it is not fully amortized, a balloon payment is required at the end of the term to repay the remaining principal balance of the loan.

My understanding of it in basic terms is that the loan sets your home up as a bank account, you get paid, it goes into your house account paying down your principal.  

- How is the investor keeping track of the interest versus principal payments?

Hi @Eric Perez, I would compare the principal and interest payments of the mortgage vs the cash flow generated by the new property.If the mortgage savings are less than the cash flow from the new property, it is a no-brainer.