Hey Allante,Awesome to see you getting into investing.I'd say start with residential to get a feel,then move to commercial once you’re comfortable.

Leasing at $3k/month covers your current mortgage comfortably, so refinancing could relieve the pressure of the balloon payment.

Are you comfortable enough to risk it for the biscuit?

However, if you’re comfortable with the expenses and prefer to hold, you’d continue building equity, but it may take a while for cash flow to improve.

To put it nicely, I would proceed with extreme extreme caution, if I were in your shoes. 

With its own exterior entrance, soundproofing, and hotel-like amenities, guests have a comfortable space without ever entering our living area.

Sure, there are limited exceptions but the investors in your shoes are not equipped to identify those limited exceptions.

You can model out and find your own comfort level. 

There will be tears, but they can be comforted by the cool "Sub To" hat.

Joining real estate investment groups and attending meetups can also help you find potential partners with local expertise and help you get comfortable with cap rate analysis and other key metrics!