We've utilized the VA loan for our current home, and this strategy has worked well so far.

Hey Everyone,I have a potential investor I've been working with that is planning to use investors edge for their loan.

The interest rate on a HELOC or Heloan may be better than the personal loan. 

Another thought - are you considering an FHA loan on the next one?

It could vary of course depending on the defenses of the tenant and if the court is presently backlogged.

Kieran, the best bet here is to refinance with a DSCR loan.

Let's use that as an example. 20% down is $43,000 plus lender loan origination fees, closing costs etc is going to push you over $50,000 cash out of pocket.

Quote from @Devin James: Im currently learning this lesson with New Builds that have taken twice as long to complete than anticipated.....Finishing a Real Estate project ASAP is critical because...1) Holding Costs add up quickly- Loan Interest- Property Taxes- Insurance2) Investor Capital- Our financial projections are dependent on how fast we can turn our investors capital.

@Michael Ewersi can only speak for what i've done as i suspect it varies by market. 

Speak with lenders - and consider that although they might agree they could lend to you today - they might not be able to when you need the loan.Unless the existing debt has no due-on-sale provision, there will always be a risk of the underlying loan being called.If it were to be called due:1.