By reducing the principal balance, your lender recalculates your monthly payment based on the new, lower balance.How Does Mortgage Recasting Work?

Send as many letters as you want; many will not pay any attention to your pleas.How about instituting a RUBS based on square footage? 

So, here are the basics based on my market, which is AZ.  

Valuation rich but equity poor. we looked at one portfolio recently that claimed to have $15M and $11M in loans but the issue was the $15M valuation was based on 90%+ occupancy and not one building was at 90% so they were at 100% LTV essentially. 

I figure regardless of where they are in their lease, I want to own the building based on the location alone.

Based on the above points, you asked us (experienced investors) what would WE decide.  

As to your point about confusion in the future, it's our policy to leave the conversation and thread open and available for anyone to read, they can gather all of the information and make an informed decision for themselves based on ALL the information provided.

Reaching out to the community to make sure I'm not off base here to immediately think to decline this offer.  

Make sure to run your numbers conservatively and based on the current as is value if you plan to go this route. 

Keep detailed records of income, expenses, and improvements, and choose the right filing approach based on your comfort level with these rules.This post does not create a CPA-Client relationship.