Just make sure they are understanding and I bet it'll be fine.If you have balancing or control issues - meaning if one space is significantly cooler or warmer than another - you can fix that pretty easily and cheaply but just installing in-line dampers in your registers or in your duct system. 

It means in year 3, you'd pay 4% of the loan balance as a penalty.  

You'll read some commentaries that the market is starting to swing back toward a more "balanced" market vs. being very much in favor of sellers, but values are continuing to rise, albeit maybe more slowly than in the past.

Should i encash the balance amount shes sent me?

Usually, the Unpaid Principal Balance (UPB) stays the same and all of the arrears, additional interest, fees, etc. are added together and become the new "deferred principal balance."

I already spoke to the note holder of the existing loan and they were fine with paying off the proportionate debt of the park I am refinancing and keep the balance on the other park. 

The owner financed with 10% down and carried the balance.

Here are the numbers: Current loan balance is $150k @ 4.5%Estimated cost of the garage is $25k to $30kARV is $250k to $300KAny advice offered will be much appreciated!

Here's a summary of the economics.They purchased the property for $280,000 in 2004.The loan balance is about $178k.Monthly principal and interest payment is about $1,265 with $709 currently going to interestProperty taxes are $4,116 annually and insurance is $1,000.Currently the house is vacant for the sale so there's no rental income.Therefore, the monthly burn is -$1,135 (ouch).For the sale:Property was originally listed at $335k and they received 0 offers at that price. 

Currently there's about $345k left on the loan balance.