I'd assume the loan has either a balloon or ARM.

And I want to know in which area should I focus in attaining my knowledge while in here so I know what I'm doing once I get back.As I mentioned, I'm pretty new to this.. and any form of help and advice would be greatly appreciated :)And also, if there are any active duty military members or vets that could help me by explaining what advantages I have as a member of the armed forces when in comes to real estate investing, would be greatly appreciated.Filip Vaco

Here is how it breaks down for single family residential in Bergen County:Conventional/Fixed Mortgage  45%Conventional Arm: 25%VA: 2%FHA: 9%Cash: 19%Owner Financing: 0% (only 7 total)Balloon: 0% (only 1)1031 Exchange: 0% (only 2)Other: 1% (only 34 sales)

Armed with good suggestions and preparedness should work in our favor.   

@Brie Schmidt discusses how budgeting could assist you with your $10k effort.Consider reviewing craigslist for your area as a resource to confirm available area rents, as does @Michele Bruce per her podcast.We don't give away fee to PMs for tenant sourcing or screening.You'll need a relationship with your tenant and it should begin before you agree to have them rent your place.Landlord work early in an investing career tends not to be an arms length effort.Be wary of trying to make it so for any stage.Yours is likely not really a question as to what to do with the equity you have in the home but more as to whether you want to be a landlord and whether your market is tenant rich.Good luck.

Tenant-Jill files a lawsuit against the company because the broken railing caused Tenant-Jill to break her arm.

@Pedro Oliva To find out about an area go to IREM.org search for ARM certified property managers.

The state code seems to explicitly state that the enforcement of mortgage debt is not defined as doing business and therefore exempt for registration requirements:Sec. 1776.86.

My only concern would be if doing that would make the pruchase and non Arms length transaction. 

Doing any wrap where you charge a higher rate than you are paying is very difficult, most attorneys screw it up, if you have usury laws and in giving APR disclosures you're looking at weighted average interest rate computations based on all amounts financed including the underlying mortgage, if it is an ARM loan, the variables will be to great to be accurate under RESPA, if you're off one tenth of one percent you might as well not even give financing disclosures.