Freddie Mac and Fannie Mae have small balance loan programs which is a great way to cash out some money and secure non-recourse debt at low, long term interest rates.

Your monthly mtg payment includes principle and interest, the principle reducing your loan balance.  

Do you set up a payment over five years then give him a balloon payment for the remaining balance?

The white balance of his camera will be more optimized, contrast and levels will be better judged by the camera's software, even the focus will be sharper if you flood the rooms with light.

South Carolina being a lien theory state, one would normally have an attorney draft a mortgage (which creates a lien on the property and makes the full balance due upon sale) and promissory note (which outlines the payment terms, interest, etc).

The mortgage balance right now is about 96K - so I'm looking to pull out the 10-15K downpayment and the 15K rehab. 

Here are the numbers:Original Loan Amount: $ 42,700.00Loan Origination Date: 12/09/2013First Payment Due Date: 01/01/2014Last Payment Date: 9/27/2018Current Loan Balance: $ 41,802.77Current Interest Rate: 9.900%Current P&I Payment:$ 371.57Current Escrow Payment:$ 30.43Maturity Date:12/01/2043Term Remaining: 302Loan Type :CFDFMV: $87,500The WorkoutWe picked up this asset for $18,500 ( 44% of UPB)Expense Cost: $2000 (Includes, servicing, initial due diligence, forced place insurance, back taxes and misc)Contingency Fund $2,500All in Cost= $23,0008 Months of Payments = $2968Reinstatemet fee from borrower = $2000Total Income received $4968We sold this property after 1 year as a re-performer for $35,500 (Approximately 85% of UPB)$35,500 + $4968 = $40,468 Total ROI = 76%We're excited with how this one turned out and can't wait to see what we will do with our next one!

I think we're balancing out and may start to see corrections in the next 1-2 years.

Will that full 20k balance be due the following month like a credit card? 

Nothing says I cant put a line of credit on it once the balance is paid down, but it will just take longer.I’m leaning towards putting the HELOCs on them as it gives me more flexibility, however with interest rates climbing that could bite me.