What is your current rate and what are you being quoted?

Would the 9-year balloon concern you, knowing you'd need to refinance or pay off the balance at potentially higher market rates in the future?

I have a 2.5% interest rate on the balance of the mortgage. 

However, Austin proper has a high barrier to entry due to the sharp rise in property values in recent years.

And you are looking at an interest rate around 7% instead of over 10%. 

You should be able to get up to 80% LTV on a rate term refinance.

Keep in mind a HELOC rate will be much higher because of the CLTV and risk.

But with all the syndicators out there NOT all but many also getting stuck with their deals needing to recapitalize because interest rate rise and tax's and insurance rise was not planned for or contemplated these are legitimate actions to take to protect the greater good. 

Some of these renters are capitalizing on low interest rates and choosing to buy, but many are unable to buy due to lack of down payment or credit factors. 

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?