So principal payback + 70/30 split my way in terms of cash flow.

After receiving $19,700 from me in actual payments (not including escrows), I was credited with a whopping $3,000 principal reduction, or over 84%(!!!)

Are all gains taxed as ordinary income or is principal returned in later years able to be considered long term gainThanks,Jody

That way its easy to share files

Meaning, you can choose to pay only the interest on the outstanding balance, rather than making payments that also reduce principal.

Payments are split between principal and interest.

That being said, let me cut-and-paste a portion of one funds underwriting guidelines surrounding flood coverage requirements for their DSCR product "The appropriate amount of hazard insurance is determined as the lesser of:
o 100% of the insurable value of the improvements with replacement cost coverage, as established by the property insurer, or the unpaid principal balance of the first and second mortgage (sufficient coverage for the new combined loans), oro The combined unpaid principal balance of the first and any secondary financing, as long as it equals the minimum amount required to compensate for any damage or loss on a replacement cost basis, typically 80% of the insured value of the improvements.

The parties to this Agreement have organized a Limited Liability Company under the provisions of the Act by delivering Certificates of Organization to the Secretary of State of the State of Iowa for filing.

This is return on equity, counting cashflow, appreciation, and principal paydown. 

Was this a Reg D filing?