I'd still be occupying it for majority of the year, but not sure if this crosses some line between investment property and primary residence.Here is the HUD's definition of principal residence for reference:A Principal Residence refers to a dwelling where the Borrower maintains or will maintain theirpermanent place of abode, and which the Borrower typically occupies or will occupy for themajority of the calendar year.

A lot of my clients will keep a separate account on the side where they're contributing each month and can ultimately apply that towards principal.

The balloon payment is due in the next few days and I am confused as to why the principal that is left is so high.

You can refi out of a high rate, you can't refi out of a high/ inflated principal balance. 

I recently sold a property in NJ, looking for a primary that I can renovate through the winter and rent in the spring/summer... refinance when rates drop and find another property for my primary or rental... ideally I need a primary shelter for myself and a rental or 2 to cover all the mortgages while I grow my business and build cash flow to show deposits for my business, while paying down the principal on all of the properties.

Purchase price = 109,900Down payment = 27,475 Total Loan = 82,42530-year fixed at 8% is $605 per month for principal and interest. 

The seller did what the contract asked for and what you agreed to; the contractor did what he was supposed to do, your agent did what you told them to do (after all, YOU are the principal in the transaction, it's not your agents job to tell you what you should do or ask for, even tough a little bit more guidance might have been good).

If its for at least a couple of years you can pay extra on the mortgage towards the principal so when you do refinance at a lower interest rate (though who knows when that will happen) your loan amount will be smaller and it may cash flow at that time. 

Has anyone heard of a mortgage that has a checking account linked to it and at the end of every bill cycle(like a credit card statement) the mortgage company will check your balance and reduce your principal by what is in your checking account and only charge interest on the delta.

Feel free to message me, then I will answer more specific questions.In general, they like to keep their principal rolling to boost their net worth instead of cash flow.