Depending on how much it is, you can pay them the difference at closing or via contract..The 'cleanest' solution is likely a new conventional purchase mortgage.

I like the cap rates and it's very attractive. 

Compare rental rates in your area for similar properties.

Let's say after renovations, your property can be rented at a higher rate.

The remaining principal was about $450,000; the stated interest rate was 11%, and the note had 8 years to run with a balloon.  

@Adriana Siu if you can get $3500 cash flow and have a low interest rate, it should cash flow well.

Also, I hear that Ohio has pretty good returns based on purchase price and rental rates. 

But the reality is most people rent these spaces, a lot of homeowners depend on this income. 

Dan - I'm not buying in DFW, but I am underwriting with 0% rent growth the next two years and then growing out my rents and expenses at the same rate in outward years - typically at 2% each.

A cash out refi would allow rent/fees to be covered by tenant but it changes it form a 20 yr loan to a 30 yr loan and also increases the rate up to like almost 8%.