The option terms can encompass both the upside potential in equity as well as capturing a part of the cash flow.This would again be attractive to an IRA investor that does not really mind waiting for their return on investment.Happy InvestingDerek Dombeck

That 2% does make a huge difference, probably about a 12 month difference in equity for my loan if paying down principal at the normal rate.  

Paying it off pays off your cheapest shareholder, who doesn't ask for any upside in equity and only asks that you keep their principal intact and pay a low, fixed interest rate.  

We both put in equal shares of cash and bought two properties.  

I had about 150K in equity in my personal residence and used about half of that via a HELOC to pay for the downpayment and rehab of my latest project.

I have about 260k in equity in a rental I have which brings in about 600/month in net income. 

So if you own 13 properties at 50k each, you have 650,000 in equity.

I think a buyer would show much more praise to their realtor if he brought them a home they liked with 15k in equity versuses one with maybe just a couple thousand.

It might seem like you have $25K in equity.

If you have properties with $10M in equity, you might as well have enough insurance..