This Independent Contractor's agreement spells out allowed activities for the brokerage with you being a licensee there.The principal  broker can dictate what type of business you focus on and where.

He's responsible for 25% of the recaptured depreciation, his gain on the sale is taxable as it is received in principal as a % of the payment and he will have interest income earned just as with any other interest at his tax rate. 

from my quick math you if you break even on cash flow, you are still gaining 600/ month in principal pay off.

I don't know how to calculate an amortized loan pay down since the interest amount changes every month because the principal gets paid down every month.

So if they buy a NNN for 10 years fixed primary term lease from a national at a 6.5 cap and a rate is in the 4's fixed then after 10 years of principal pay down  I take that number and see what interest rate after the rent bumps would maintain the same starting cash flow.On one I did recently the rate could go up to 7.5% on a refi in year 10 and still maintain the same cash flow.

It would be great to get some feedback on what seems to make investment sense. and on whether it would be better to keep saving cash toward a down payment on a SFR or to buy something at a lower price point sooner.HI Erin,A quick break down for you would be:5% of 250k for 2 bedroom condo would be 12,500 so that leaves you with a 237,500 loan assuming you structure your conventional loan with lender paid MI (absorbing it through rate) around 4.25% you could have a monthly payment around $1168.35 + 300 HOA + 260.42 est property tax @1.25% annual + 40 estimated condo HO6 policy per month = $ 1768.77 per month payment cash out flow.Of the total $1768.77 monthly, $321.21 is principal and the interest and property tax portions are 841.14 interest and 260.42 for property tax.So if we assume you're in the 30% tax fed & state brackets and you took out that tax benefit along with the principal portion since you're paying down your own loan you'd be at a net monthly payment of $1,117.09.You can use that to compare your rent vs buy.Hope that helps.

You wont be able to deduct the $90,000 if paid off because the irs does not count principal as an expense.

These guys are backed by some serious venture capital ($13.3 million) and the principals are experienced residential real estate private equity people, so you know they're going to be around for a while.

.$1,000,000 purchase price @ 3.5% for 20 years = $5,799.60/mo$150,000 gross rents1st year P&I = $34,440 (interest), $35,156 (principal)1st year deductions$34,440 (mortgage interest)$25,641 (depreciation, $1M/39 years)$75,000 (expenses - I'm using the 50% rule here for the sake of simplicity; property management, property taxes, insurance, maintenance, repairs, etc.)$135,081 total deductionsSo my cash flow is going to be 150k (income) less 75k (expenses) less debt service ($69,595), or roughly $5.5k.

Coupled with the fact that she has a much shorter time horizon at 60 than she would have at 30, 40 or 50, I would lean more towards getting this money into the hands of a fee based investment advisor and getting it deployed into exchange traded funds (or other suitable principal protected, low fee instruments) that will (if history is any indication) return her much more overall than the real estate portfolio will (if history is any indication), in a completely principal protected environment.