Refinance a Private Money Mortgage

[Bob Ebaugh]

We have a $130,000 triplex that I have a $83,000 private 5% interest only balloon mortgage on.   The lender, a dear friend has some health issues, and I wish to repay by refinancing. It's not terribly urgent, but necessary sometime soon.

Freaking out at the 5% in costs, about $4000 minimum cost to just refinance the existing balance on a property that's making 15%.   Sure I can roll a lot into the new mortgage, but it still a big hit.

We have another duplex property with no mortgage, a similar $130K value with no mortgage. Thinking about a HELOC on that one, if I can find a lender with better closing costs accepting a non owner occupied property. Use those funds to pay off the other mortgage. Money is money.

Most of our properties are in a Solo 401K, but mortgages there are difficult due to the non-recourse requirements.   So we don't have any.   Our only debt is the one mortgage, but can't spare the cash at the moment to pay off on our own.

Am I missing other funding options worth considering?   Thanks!