Buying partner out but cannot come up with the full amount right away.

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We have a vacation rental home in Florida that does very well. The problem is that I entered into it 1 1/2 years ago with a partner who has done 0% to make it as successful as it is. It is all myself and my husband. So we have told the partner we want to buy them out as we do not feel it is fair to share 1/2 with them when they literally do nothing for it.

The problem is that the buy-out is going to happen January first and I cannot come up with all of the money in that short of time. Does anyone know of a way to finance this? We wanted to do a HELOC on the rental home but it looks like that is next to impossible and even if it is, it will not give me very much money at all. Should I be looking at a personal LOC or personal loan from a bank? Ideally we would love for the home to pay the bill for this since it is doing so well.

Sorry to sound so naive, this is the first rental property I have purchased.

Hi Kristine:

Is the property free and clear of encumbrances?

We have a mortgage, but the mortgage is only in myself and my husbands name.

So there is just one mortgage - then did the partners pay their half in full in cash?  If so, see if they want to "hold a note" just like a bank, and you pay them in installments with interest. 

If they didn't pay half in cash, then they really didn't own half of it in the first place IMO. 

You can also check with your existing lender and see if they will give you a refinance if sorts to buy out the partners' share. 

Funny thing with the bank who is our lender. US Bank bought our loan and when we contacted them about a re-fi or HELOC, they said they could give one to us because they do not service that area. But you bought the loan for a home in the area that you don't service?