We optioned it for 5.5 million and each annual payment is 100% goes to principal so no interest carry at all.

The money you make on renting-by-the-room could go towards paying down the principal....OR.....you could put that money into hyper-growth mode by investing it into say, an ETF.....regardless of which path you choose, you will soon have paid-down the principal and have that 20% equity that is needed to eliminate the PMI. 

The bill would double the tax exclusion on the gain from sale of a principal residence and require future annual inflation adjustments to the amount.

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property. 

The property just needs to generate enough income to cover the monthly principal, interest, taxes, insurance and HOA (if applicable).

Fannie/Freddie do NOT allow:Texas Section 50(a)(6) Loan Security PropertyA Texas Section 50(a)(6) loan must be secured by a single-unit principal residence constituting the borrower’s homestead under Texas law.

The principal paydown (and hopefully appreciation) over the 5 years should offset the refi fees.

Rental houses I bought 4-6 years ago are giving me 100% or better returns on my $ when you factor in cash flow, appreciation of 3-5% and principal pay down my tenants are paying off.

I put up $25K that was supposed to get a % return on principal with interest.

You can have 3/4 of the lease payments credited to principal if you wanted, and then lock in a juicy purchase price that gets him/her salivating.