The main thing is just to get started and get into one, especially with interest rates so rock bottom low.One note I will say - if your primary goal is live rent-free with one property in Paterson, you may want to consider a conventional mortgage with higher down payment, just to decrease principal so that your monthly payment is lower and easier for tenant rents to cover it.

I think the best thing you can do is help them understand the 'why' behind using this method.As I'm sure you know the BRRRR method is very popular because it helps increase the speed at which you can build your investment portfolio and investment income.If I were explaining this to a family member I would compare the traditional way to invest in real estate vs. the BRRRR method.Traditional- Buy an investment property, let the tenant pay the house principal down.

Some brokerages do not permit agents to sell their own (again, due to liability), some take a percentage of the commission on the side where the agent is the principal, and some allow agents to keep 100% of the personal deals for a fixed number of sales. 

For funding deals I’m planning on using my investment accounts which include a brokerage account (which I plan to invest a $1000 a month into stating in January), my Roth IRA (I plan to invest $500 a month into and I can pull out the principal amount that I invested without paying a 10% penalty or taxes), and a 401(k)/TSP loan through my job where I can take a loan on half of my TSP balance (currently have $20k in my TSP account).

I attended a recent webinar where a syndication principal was cautioning about the 1031 exchange ability of LP and LLC entities.He was saying the they must have a TIC form in order to conform to the 1031 rules. 

For #3 if it doesn't go toward your principal than it's an expense

In other words, think of the new lower payment as the minimum payment you are required to make, but you always have the option to pay additional principal (i.e. higher payment), which would pay off the loan sooner than 30 years.

In other words, you can often get the same or similar "effective" interest rate on a 30 year loan, by just paying additional toward principal every month.

The interest rate for cash out is 3.875% Principal and interest payment $1,833.92 loan amount $390,000 cash out to you approximately $40,300The interest rate for rate&term 3.500% Principal and Interest payment $1,585.13 loan amount $353,000 cash to close $700 for appraisal fee, 0 due at closing.$40,000 cash out costs $248 a month difference in payment

So if I take one out, do I pay interest-only for a significant timeframe before I start paying principal?