You are only replacing the existing loan balance. 

Like most people I want to achieve financial freedom.

I refinanced about a year ago and have a remaining balance of about $500k on the house.

Buy him out and refi the remaining balance to lower monthly payments.

You need to bring 35-50% equity, have cash reserves and a balance sheet to back up the loan. 

Bought for 150kCurrent value: 240k according to zillow, not factoring any upgradesprincipal balance: 76krate: 4.5PMI: 1,200 annually

@Derek Epperson  You are right in that it is a balance between income and work, but if the 12 unit apt has been well maintained, then it shouldn't be a lot of work. 

This was my first real estate investment so my goals were fairly conservative, I wanted a balance of cash flow and stability so I picked a modest sized 3/2 home in a B neighborhood in my market.How did you find this deal and how did you negotiate it?

@Richard Weinberg1) If you have a Solo 401k that supports a 401k participant loan you can simply take a 401k participant loan up to 50% of the balance not to exceed $50,000.2) The notion of loaning funds from your self-directed IRA to someone else (and vice verse) could easily be challenged as a step transaction where the step of loaning to someone else would be ignored and the transaction would be analyzed as a loan from your IRA to yourself which is prohibited.

I can say I have already achieved my initial number in three years, and unlike other investments this number will always stay same or go higher.