Purchase price of property at 5 years is calculated at (Current Property Value - Option Payment - Principal Portion of Lease Payments).Over the 5 year lease the buyer takes on 100% of maintenance costs, improvement costs, taxes, and insurance. 

Can you explain principal and how do I pay it down faster.

I tried running some numbers on the properties I own, and all of them I couldn't afford the principal + interest on down payment as it completely wiped away my cash flow.

In addition to principal paydown and appreciation (crazy hot market in Denver) make house hacking attractive from an RIO and saving perspective. 2.

Your principal does not decrease and continues to grow and should almost always outpace the interest you pay on the liquidity.

My position is that if you can find a deal where your PITI (Principal, interest, taxes, & insurance) is less than you are currently paying rent then you are saving money and learning a ton.Getting started sooner, rather than later is truly the key to getting ahead. 

What percentage goes toward principal reduction How do you make the seller confident that you’re going to perform?

Here are the details:Conventional loan (because there’s no rush)Purchase price: $450,000Down payment: $90,000Interest rate: 4.5%Principal : $1824.00Utilities: $390.00 monthInsurance: $60.00 month Property taxes:$422.00 month Total: $2695.00Gross monthly rents :$3425 (There’s a little room overtime to increase rents)Cash flow $730.00 Vacancy factor not figured here probably somewhere around $300.00I’m wrestling with the expense of 90k down .

I currently pay $800( principal and interest, tax, insurance, and pmi) for my mortgage and receive $1100 for rent.

House was originally worth $189,500 but with my downpayment, minor improvements and principal paid toward the loan I would say my total equity is $26,880.It would rent for $1,500 per month.