Given your expected income increase, you could refinance or pay off the balloon payment when it comes due.

I assume you are referring to refinance, loan modification, assumption of mortgage, mortgage assignments, etc.

Hello Tara,I have not done seller financing however I have refinance a lot of loans that where seller financing.

The initial plan was to slowly rent out the spare rooms and renovate until a refinance/moving out and onto the next property made financial sense. 

A little aggressive and direct but to be honest totally accurate - first step here especially since you are in a refinance position is to get it rented and then challenge the market rent numbers

Tim,You can refinance up to 80% LTV at 8.5% on a DSCR.

Borrowing Against Equity: Costs and ExpensesCost of Cash-Out Refinance or Home Equity Loan:Interest Rate: Assume a 4% interest rate over 30 years.Monthly Payment: Approximately $716 per month.Total Interest Paid Over 30 Years: Approximately $108,000.Closing Costs:Typically, 2% to 5% of the loan amount.

It sounds like a DSCR cash out refinance would good option for you as you can be in an LLC, no DTIs, and there are no concentration limits when it comes to how many you can do. 

If I were to undertake a project like this, I would likely want to refinance into a mortgage with a longer term.  

You can do a ‘cash out’ refinance on the rental home as a permanent fixed 20-25-30 year loan to pay off the Heloc on the primary and most likely the equity line on the primary permits a ‘re-draw’ to utilize again.