Loans Question - starting out

[Michele Jones]

Hi!! I am just starting out and looking to invest in Memphis. I have been talking with Dean Harris & Taz. I need to reconnect as the holidays were crazy. That being said, I want to start out conservatively as I will be a long-distance landlord. I currently reside in South OC (SoCal) and own my house. I am looking out of state because I do not want to be a landlord here as it is  expensive and not landlord friendly. 

My question is…should I get a Portfolio Loan as I would refinance in a year or so? I would not want to tap into my equity in my house, 401k or my savings. I guess this would be coined as creative financing? What are the disadvantages? Advantages? 

Also, could I take a portfolio Loan on a second home? 
any advice and/or suggestions  are welcome. 

Thanks! 

[Michele Jones]

@David M. - I would prefer not to tap into my equity. From what I gathered and read about portfolio loans was that it isn’t sold to the secondary market plus the rental income could be used to determine how much I can qualify for? Perhaps I misunderstood. 

With a conventional loan, I have to put down 20% which isn’t the issue. I am just trying to figure out what loans would work with my situation.