Adding an ADU (which I know you made another post about this but the cash flow wasn't there), is one way or moving and converting your existing home into a rental is another.I would considering using funds you have to buy properties cash, get them up and running, and then do the cash out refinance (called Buy, Renovate, Rent, Refi, Repeat/BRRRR) in low cost states.

When you refinance an investment property you are going to be capped at 75% Max LTV cash out.

With these prices, it's making finding a cash flowing property after refinance nearly impossible.My question for the group is this: has anyone else noticed and/or struggled with this?

Deciding to BRRR (Buy, Rehab, Rent, Refinance, Repeat) instead of selling makes sense if the cash flow and ROI are better with the property as a short-term rental (STR).

Can you start with a 10% vacation loan and refinance with a DSCR loan later on?

My partner funded the entire purchase price, and we are about to refinance at the market value, allowing him to get all his cash back with a profit and allowing me to buy the house with no money down.

This worked for me, I had the same situation with a HELOC but did a failed refinance a few months back and had a solid appraisal in hand.

Our mortgage agent suggested to buy as an investment and then refinance, but is not a good idea since we cannot take cash out (we don't have enough for the 25%).We thought of sending an offer contingent on one of the units being vacant, but the seller doesn't want to put that into written. 

The next issue I think is we want this property for us since we just got the LLC started once the project is finalized we don’t have enough track record on the LLC or as a business owner to get a mortage or refinance the property under a mortage.

I'd prefer to keep my investing local to Chicago right now.I would do the cash out refinance and use the equity you currently have to buy another property.