Creative Finance Thinkers Wanted! Unique Problem to be solved

[Armando Melchor]

Hello everyone,

First time posting on BP! here's my dilema: I purchased a SFH with a VA loan 3 years ago (before I started learning about this whole game). I want to refinance it to a conventional so that I can purchase a 4-plex in the Hampton Roads Area (with a VA loan AKA zero down). Currently the loan has 305k and is worth maybe 340k so LTV is aroud 91%+ with closing costs rolled in. I cannot find a single bank or credit union to go above 85% LTV on an investment property. I just got tennants in there under a 3 year lease on the 1st. To achieve the 80-85% LTV that lenders want on investment properties I need 40-50k... I have zero. The places I am looking at produce great cash flow which is why I'm determined to make it happen! The 4-plex will cost 425-470k of which I have nowhere near a 20% down payment which is why I want my VA entitlement back. Should I apply for a line of credit to get the 50k to refi at the 80-85% LTV? or try another type of loan and take a line of credit out to make the Down payment on an FHA or conventional loan while keeping my SFH as a VA loan?

FYI: VA loan is $1822 per month taxes and insurance included. Rent is 2200 over 3 years. Refi should lower payments and increase "cash flow". I understand those numbers are horrible, again, this was before I knew anything about real estate investing! However the home is brand new so I figured I can rent it for a few year with no real expenses, then sell and get rid of the horrible purchase I made and get some equity out of it.

I hope someone has gone through something similar or has sound guidance to get the refi and new purchase moving forward ASAP. 

THANK YOU IN ADVANCE.