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.

Was this a Reg D filing?  

If you believe a Residential Property Wholesaler has violated any governing statute or rule, you may file a complaint with the Oregon Real Estate Agency (OREA).

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. 

Change current principal balance to a new number & save.- Go back to Properties page- Refresh- You probably see the old mortgage value rather than the new one for that property.- Go back to the Property Details page and edit mortgage. 

Returns are generally what you negotiate,(9-13% for me) but keep in mind you’re only earning that on the unpaid balance, so the principal part of each payment you receive has to be regularly reinvested to maximize returns.

As the lender, you can make a credit bid up to the total amount owed to you (principal, interest, fees), but if you want to bid more than that you’d need to bring in cash for the difference.