Getting approved for a second mortgage to start investing

[Tyler Hadfield]

Hi BP, my name is Tyler and I have a problem. About a year ago I helped my friend save his family home from being foreclosed during his parents divorce. As a result my name is on both the mortgage note and the deed of the house. Now, a year later, I am looking into buying my first invesment property, ideally a live in flip/ house hack. I am having trouble finding lending because my debt to income is thrown off by the mortgage note, even though I do not live in the property and have never put a cent towards it. 

I spoke with a mortgage broker and he told me my options were as follows:

-have my friend attempt to refi, either by himself or with a different co-borrower to remove my name from the note

-have my name taken off the deed, but keep it on the mortgage note (I don't understand why this would help but the broker said it would allow me to get a second mortgage)

-sell the house and cash out

With the first two options I wouldn't get any of the approximately 90k in equity we have, and I'm not sure if a replacement coborrower could be found, and my friend doesnt want to sell the house. I don't really care about the equity, because as I said I never put a penny towards it, but I don't want to take my name off the deed and stay on the note, that seems risky. All I want is to get approved to do my own deals but I don't know how. 

My friend wants to keep the house, rehab with the cash we were given at the time of purchase, and then refi to pull out equity for a second deal. I am okay with this plan, but it's been months since we closed and there has been no progress made. Ideally, I'm looking for a way to do my own deal without giving up my stake in my friends property and without burning bridges between us. That way I can do my deal which will keep me satisfied, while my friend can go at whatever pace he wants with his property and eventually I'll realize some profit for helping him. 

What can/should I do? Has anyone been in a similar situation before? Thank you in advance for your help, any advice is appreciated!