I need some help. Five years ago I entered a lease option contract on a rental property. The payments are equal to the mortgage, and I’ve been cash flowing nicely, but I have a balloon coming due. The balance is only about $40k, but I can’t find a bank that will lend on it. They all say the mortgage amount is smaller than they normally work with. There is also concern that there isn’t enough equity in the deal either.
I don’t want to lose the property, but the original owner wants $5,000 to renew the agreement.
Will the $5000 apply to the principal? If so, you might want to pay it and enter a new agreement. Just make sure that the new agreement includes principal pay down. You don’t want to be making interest only or lease payments.
Others options to consider. Have you tried talking to a Credit Union or small community bank? They typically have more flexibility in the small loans than bigger banks.
Do you have a primary residence you could take out a line of credit on?
If your credit and income is good, you might even be able to get a personal loan to cover the purchase.