You are paying interest on the current balance and not paying off any principal for 5 years.

What sucks is your checkbook register balance gets out of agreement with the bank statement until they retrieve the check. 

In any case, being able to generate a P&L and Balance Sheet will make potential lenders happy as well.

Our policies are well documented and they would have been explained to the tenant, and an acknowledgement signed, when the lease was executed.1) Rent is due on, or before, the first of the month;2) If any balance remains outstanding as of 17:00 local time on the 4th of the month, a late fee of $50.00 is assessed (for a first offence).  

The financing however might be a challenge, It would have to be a mixture of say 20% hard money who are willing to be second of any lien and the balance raised by local banks who would probably insist on being first lien holders.

Your honest words of encouragement balanced with a little caution was just what I needed to hear!

There is no way to know what the house price will be in ten years, if you could every person on this site would like to talk to you about a potential property :).If this is an investment you are looking to make you need to balance all facets of it with your expectations and make them realistic.

The loan balance is irrelevant, as the shorted investor is looking for as close to FMV as possible.  

Business partner has cash and I am wondering if we can use my credit to apply for a loan but partner's cash (can be funded to me after the closing because I have enough balance in the bank) as down payment.Has anyone done this?

Flip2freedom episode 77http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/ - LISTEN TO THIS TODAY!