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.

We currently have a home we paid $125k for 5 years ago and have $60k left on our principal with our 30 year mortgage.

At the current rate of 5.99% with 20% down, the monthly payment just principal and interest would be approximately 4600$ a month.

He says all of our rent payments and the down payment will go towards our principal when we get a mortgage to buy.He's also going to have the 2nd floor converted back into an apartment on his own, making it into a legal 1 family w/accessory apartment.

., AS NOMINEE FOR BCI FINANCIAL CORPORATION from XXXXXXX in the original principal amount of $ 138,400.00, dated 05/13/2004 and recorded05/13/2004 in Volume 338 at Page 179 of the Winchester Land Records.

How much extra cash flow, principal paydown, projected appreciation will you get from that additional property?