Please give me some ideas

[Chi Vang]

Hello All,

So the house I live in, the mortgage is under my sisters name. Now I want to get the mortgage under me. I have ask the current mortgage company and they are not willing to let me assume the loan so that idea is out the door. The current loan amount is about 160K. The house is worth about 260K+. I want to go buy another primary house and rent out this house. I'm confident that I can rent this house for about 2k a month. I currently have 40k in savings for the next house purchase. After researching a few things, regardless of how much equity this house have, I still will have to put money down if I get a new mortgage. (I would really like to keep my 40k for the next house purchase) 

Do I just get a conventional loan for now and then refinance 6 months down the road to get as much equity out as possible without it affecting the cash flow too much?

I was thinking about DSCR loan too but if I have to put down 20-25% on the 160k then that would be all the money I need for the next house.

What are some creative ideas that I should be thinking about? Is there something else I'm missing? Should I figure out everything on this current house first and get more money out from it? Or do I purchase the next house first and then figure this current house after? Because I also want to be in the best position where the bank will approve the second mortgage too. 

Let me know what you guys think.

Thank you.