If the answer is yes, depending on how much, I would refi it and buy another rental with the $85k. 

Depending on the situation, pet rent could be $20-100 per pet.

Depending on  your personal family situation will dictate where ya wanna buy. 

Depending on the purchase price of the new property, a 260k free-and-clear property should give you plenty of ability to purchase a new property if you have a willing and creative lender.Just keep calling banks in your area until you find one.

@Diana Dorantes - It really depends on what your comfort level with risk is. 

Depending on where you are sometimes cartels will do things like this to have a minimal paper trail especially if you are self managing. 

It really depends on what you're trying to accomplish. 

After that they want to attempt to buy back the property at 850000+ or depending on market value which is still in discussion.

Aside from the looming economic correction, if you sell it in the future, depending on when, you'll be liable to capital gains tax.

Also, does anyone suggest listing our property in different ways -- i.e. leasing agency, old fashion bulletin boards, etc?