(i.e. if you have made 12 months of payments, they will re-am your loan for 348 months base on the new loan amount after chunk payment is applied) This is an awesome way to lower your monthly payments without having to refinance the entire loan.

Not great - but if you can find way to make the deal better (lower purchase price, minimize rehab, increase rents, get a duplex/fourplex instead of a SFH, then the numbers start making a little more sense.

I had just always heard this is a way to lower the odds of the lender calling the note due, but not 100% foolproof.

If you want to invest in that area Lincolnton would be a better bet because of the new Hwy 16, lower taxes, better schools, and not far from the West side of Lake Norman. 

I need to start looking at properties that will qualify for the lower rates...it doesn't make sense to invest directly otherwise.

I'm learning that I may need to increase rents to a minimum of $500/door because the lower the rents the lower my net income when expenses are still about the same across high end and low end asset classes.

I suppose it is not too bad in class A areas and A to B buildings (hundreds of units) as income and class of tenant tends to be better.Everyone can have the so called high yield and high headache residential lower income tenants.

If I am able to find a deal, and buy a condo for 80k so lower it from 110k to 80k, and then renovate it would i be able to refinance it, and pull money out of it?

This would equal a lower interest rate and a $600 monthly cash flow.

If it was, we would be re-negotiating with the seller for a lower price which he may or may not accept.