I have about ~40K equity in the rental and owe about $157K on the loan, but the monthly rental income only covers the mortgage payment + insurance + taxes + an additional $75 a month, which I put aside for repairs and anything that may come up.  

Even if you had 20-30, you would receive the bill, log in to your bank, set up the payment- done.

The borrower/ owner is MIA this is not the first time this has happened but he usually contacts me and gets his payment up to date.

But all they ever say is find the deal and we'll cut you X%...no paperwork, no written agreement, just verbal with the expectation of payment which leads me to believe that everyone is paying under the table.

@Noel Walton,Are the payments and taxes current?

Then, you miss a couple of payments and the seller wants to take back the property.

Any part of the sale price that exceeds the home's appraised worth must be paid upfront as a down payment at closing. 

The individual is required to make an investment down payment of $63k (20%).

The individual is required to make an investment down payment of $63k (20%).

Which of course even with balloon payment due in 5 years then I wouldn't have enough mo eye to buy something with the same cash flow I have 7 more properties I am thinking of selling.