If you gactor in that rents should have increased over 5 years you can use that to offset even more without cutting into cash flow.That being said, I have started to make extra monthly payments towards principal on the notes that will come up in the next 3 years for refi, which will bring the baloon amount down significantly.

Our home value has increased by about 50% per Zillow and Redfin estimates.  

I have been in similar situations and have rarely had anyone move out because of the increase. 

Try your very best to cut unnecessary costs and increase your income.

Your profile doesn't say where you are located, so it would be very hard for anyone to make a useful suggestion of books or resources.As a new member, there are several things you can do to increase the likelihood of getting helpful responses here on the forum.

To be frank if your credit score is low the biggest hurdle will be your preapproval amount because it may not be enough to afford a property that meets FHA guidelines or your standards for living there.

It works best if the market is expected to increase over time, even if just at inflation rates.

I think the BP lease is a standard lease agreement for the entire unit/property.

I knew the market was going to increase in this area, but at the time, even spending that much was a lot for me!

I knew the market was going to increase in this area, but at the time, even spending that much was a lot for me!