Hey Richard I have a Sub 2 deal in Akron perfect for STR. 6k entry fee 6% interest 165k balance. 

This dragged the process out even longer, making it both exhausting and expensive—I’ve already spent nearly $10,000 in legal fees.

Just a heads up this will not be tax free, it will be a pro-rated exclusion.

Jung,Welcome to the BP forum its a great time to start as mortgage rates fall and home prices still priced well in many states.

Some lenders offer discounts to return borrowers so maybe look into both flip and DSCR rates when finding a lender. 

They don't allow auto payments or automatically add late fees, and tenants would have the option to pull their payment back, which is not ideal.

I also wouldnt let your mom go into 2nd position on an investment property with any sort of restructuring; it doenst sound like she's in a position to risk being wiped out.Overall, though, if you want cashflow on the new property but cant achieve that after a refi into a market rate loan, it probably makes more sense to just flip it, pay off your heloc and your mom, and use the remaining capital for the next deal.

CO states single dwelling (converting to a 2fam will cost upward of $100k- not an option).If I hold out- the property will have net profit of $600- possibly more if I refi again to bring my rate down. 

Quote from @Briley Roe:  yes those fees are very high as you have a broker fee and other fees for a loan little over $100k at 6+ points. 

I would push for very low or no money down but having a Realtor that needs to have their fee paid it may still not work.Look up the owner if possible through truepeoplesearch.com and call them up directly.