Also, keep in mind that you should have enough profit (NOI minus principal and interest) to be able to realize a reasonable rate of return and still be able to set aside some money for capital expenditures - for example, money for new roofing, paving repairs for drives and parking areas, etc.In the end, you have to get to the other side of analysis though.

It's the same principal.

I pay a small extra amount towards the principal of the mortgages from the cash flow each month to help speed the process along.

If they are stuck on a rate push the amortization out and do a balloon, otherwise I would work on getting the rate lower and the price they want as you will get mor principal paydown vs less with a longer amortization.

You would need to pay back the lienholder the outstanding principal balance of your loan plus any associated fees (Prepayment, discharge, etc.)

Explain your situation to your creditors , ask for a 90 day moratorium on payments with the principal added to the loan balance and term extended 3 months.  

Look at how much of your payment is going to principal every month Hard pass on option 2.

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

What I've learned with this structure is to ensure the you are consistently paying down on principal, or you risk the bank eventually calling in the note, or asking you to restructure. 

My principal balance right now is about 187K.