Did you use a hard money loan for this? 

10 year (the common benchmark for CRE loans) just keeps climbing.

@Daniel Han -  So there are essentially four parties in this situation. 

As far as credit, you would want a score above 680 ideally to get the highest loan to value on a cash out refinance, but I would aim higher at 720+ as that comes with a significant rate drop.

If not, you could consider refinancing Home 2 with a rehab loan.

I will also emphasize the importance of keeping at least 5% of your gross rent income and allocate it toward emergency situations each month. 

I've also used traditional loans through regional banks and a few SBA loans. 

@John LasherI don't know your exact situation. 

Small talk, showing empathy, and expressing genuine interest in their situation can go a long way in establishing trust and goodwill.Be Willing to Walk AwayOne of the most powerful negotiating tools is the ability to walk away.

I am in a similar situation.