Hi,I was thinking through some creative financing structures, and a question popped into my head regarding the following structure; - Buyer and seller agree to a sales price of $X- Seller agrees to seller financing in the form of a mortgage with a principal of $Y (<$X) , and an unsecured loan with a principal of $Z = $X-$Y and 10-year term- The unsecured loan has a provision that, if the loan is not paid off by the end of Year 5, a lien attaches to the property to secure the remaining 5 years; a "springing lien"My questions are:1) would the sales price be recorded as $X or $Y?

Self- Sufficiency of Rental Income Eligibility- Net Self-Sufficiency Rental Income refers to the Rental income produced by the subject property over and above the Principal, Interest, Taxes, and Ins (PITI).

I have been paying extra on my house since I lived here chipping away at the principal, I would like to upgrade and keep my current house as a rental property.

All lenders are different, but some may want you to pay down some principal and others glad you are improving a property to basically look like new.

Is this an interest only loan, or is it a standard loan with both interest and principal payment?

Principal + interest 821.15/moTotal expenses come to 1912.15 $As you can see, not much cash flow- infact going negative. 

Principal + interest 821.15/moTotal expenses come to 1912.15 $As you can see, not much cash flow- infact going negative.

Right now, my tax software thinks I made $15,000 profit this year, but instead I really only made $5,650 after principal and interests.   

(Assuming I pay the minimum payment) Question is, should I throw that money towards to principal or pay off the loan?

That equals:Add money received (not including loans, personal investment)Subtract any expenses incurred (not including principal payments and draws)