Because the plan contains one of two totally unacceptable features; either it states that the property is worth less than the amount owed, and demands a CRAM DOWN; that means your note principal is reduced to the amount the property is worth and the balance becomes UNSECURED debt, which means you’ll NEVER collect that portion of the money.

If you’re unsure, it’s worth getting an attorney or experienced property manager to review your documents.

Things were fine at first but I’m now in a bit of a bind and trying to think a few moves ahead.Here’s the situation:- Purchase price: $282K- Seller financed $280K at 4.5%- I’ve been making interst only payments on time- The property is cash flowing- Property is worth around $270K now- Balloon is coming due soonThe seller was hesitant to extend but has agreed a 12-month extension with following stipulation:- $2,800 extension fee (1%)- $10K principal paydown- New interest rate of 5%- No further extensions — balloon would be due June 2026The deal is cash flowing but I’m concerned I’ll be upside down when it’s time to refi and might need to bring a large chunk of cash to the table.Would love to hear from anyone who’s dealt with something like this:- How would you approach it?

I have studied my face off and it's time to pull the trigger and start actually investing and flipping real estate. Much rather BRRRR. But open to looking for multiple exits, depending on the deal  

A little more $$ but worth it.For me, it would be simply about the money.

Congrats on being near the finish line—sounds like you’ve added a lot of value.

If property value is $950K and getting current rent of $4K month and by adding two more units rent could be at $10K a month.

Like going with STR/MTR, you would incur some additional costs with furnishing and possibly adding some partion walls for bedrooms, but cashflow may be somewhat higher and vacancy may be lower than STR.

Or is this just adding an authroized user but never giving them access ? 

Only 100k for all your work barely sounds worth it, with all respect.