I like to keep things as simple as possible, but I was excited to dig into this one because knowledge is power, and the better we understand these things, the more we can use them to our advantage in real estate.So here’s what’s happening—your CPA is basically saying you’re already showing a loss on your taxes because of all the expenses that came with closing, insurance, HOA fees, etc.

If you're worried about cashflow, why would you do a 15 year loan with a higher payment -> meaning negative cashflow?

I am researching VA OTC loans in Southern California (Los Angeles County). 

More on DSCR loans in case helpful: DSCR loans won't use your income to underwrite the loan. 

Bridge loan.

its an insurance issue. not much else to do.. 

As far as financing what would be a good loan?  

You would then have two loans, one on your home and one on the refi to access the equity on the investment home.Why not just use the refi cash out from your home loan for future deals? 

A refinance into an LLC avoids this risk but typically requires a commercial loan with higher rates and stricter terms.If asset protection is the main goal, umbrella insurance may suffice without disrupting financing.

Wise lenders have borrowers sign legal agreements and have them provide collateral that is worth more than the amount of the loan in case the borrower doesn't make the promised payments on the loan.