Loan had high terms of 9.5% calculated to 20 years and a balloon payment on the 3rd year coming up this April 1st.

.- Your monthly mortgage payment (PITI) is about $2,800.- You rent out the other unit for $1,800 and maybe a spare bedroom for $500.- Total rental income: $2,300.- You’re still responsible for a $500 gap each month.Add in maintenance, unexpected expenses, and vacancies, and your costs can climb even higher.

You can put in language for an extension for a certain payment amount. 

And doing 3-4 units FHA is tough unless you have a huge down payment. 

Save that down payment money you mentioned or go for a multi family at a higher price than the single but have rental income. 

My question is, since we may not need to borrow anything to finance this, will the mortgage payment be affected? 

Please - do this today: Send her a Notice To Quit for Non-Payment of Rent; you will need to send this to her via USPS with proof of delivery required so you can use it in any legal proceeding.

And they essentially buy the property and then in 5 years, you refi and give them the down payment back.

Quote from @Christina Venegas: Quote from @Dominic Mazzarella: Quote from @Christina Venegas: is it possible to do HELOC on a primary home that was purchased 6 months ago with 5% of down payment, the property was $145k and it was appraised at that time for $160k. i need advice from investors and lenders, if anybody knows some lenders that could help me I would really appreciate it, thanks for taking your time to respondIt’s definitely possible to get a HELOC on a primary home, but most lenders have a seasoning periods which are typically 6-12 months after purchase before they’ll allow it.

The loan I got is no monthly payment's either, so we are not worried about paying the debt monthly just 9% of the loan at closing.