Can use some wisdom. Option to purchase second home

[Gabriel Haro]

In May of 2016 I purchased my first property from my landlord who owns multiple properties.

Got a great deal.

He owner financed the home to me.

Home Price $186,000

Down Payment 40,000

7% Interest

2 Year Balloon

Pre-payment Penalty: 6 month of interest

The house is now worth $300,000

Heres where I need some sound advice!

Up until today I was going to sell the home and pay out the pre-payment penalty and pocket the difference.  However, he recently reached out to me to purchase another one of his homes also at a great price. The problem is that I have been self employed for 1 1/2 years and wont qualify for a bank loan. And I don't have enough money to give a 20% down if he owner finances me the new home. What are my best options to own both homes? Would a Home Equity Loan work? Cash -out Refinance? 

Second Home is worth 300,000

He wants 250,000

I intend to live in same home and rent out new home.

Its 5:00 AM now and I knew i had to reach out to the Bigger Pockets fam.

Thank you!