I was given the loan terms verbally from a DSCR loan broker out in California for a cash-out refinance on one of my rentals.

We typically don't have trouble with getting 80% of your purchase reimbursed to you as long as the DSCR hits 1.00+.Here's a quick breakdown of the eligible loan amounts based on an all-cash investment strategy:• 0-6 Months (Delayed Purchase, no Rehab completed) - up to 80% of purchase price• 6+ Months (Cash-Out Refinance, no Rehab completed) - up to 75% of appraised value• 0-3 Months (Cash-out refi, Rehab completed) - 75% of appraised value [good rates]• 3-6 Months (Cash-out refi, Rehab completed) - 75% of appraised value [best rates]Happy to discuss your specific deal whenever you've got time to review.

I’m concerned that $60K ($50K after penalties) won’t get me far in starting a short term rental though… I’m also hesitant to do a cash out refinance on my home loan because we have a great interest rate at 2.625%.

This enabled us to execute a 100% cash-out refinance, returning all initial capital to investors while still generating cash flow.

If property values are stable or increasing, your strategy might be solid.Exit Strategy Since you plan to refinance in 12-18 months, consider what happens if interest rates don't drop or if refinancing terms aren't favorable at that time.Questions you might want to askAre there any zoning or regulatory issues with converting or renting the units as mid-term rentals?

While mortgage rates have already fell by over 1.00% since August its a great time to do a cash out refinance. 

I was hoping to structure a deal that involves paying the seller every month and then a balloon payment in 5 years (when I can get an 80% LTV cash out refinance to put a mortgage on the property without having to put any money down because I'll have built up at least 20%).

Borrowing Against Equity: Costs and ExpensesCost of Cash-Out Refinance or Home Equity Loan:Interest Rate: Assume a 4% interest rate over 30 years.Monthly Payment: Approximately $716 per month.Total Interest Paid Over 30 Years: Approximately $108,000.Closing Costs:Typically, 2% to 5% of the loan amount.

My thought process is, if I could come up with $800k on a refinance, I could come in on a cash offer on the hotel for sale and get a much better deal.

The interest rate on the triplex is 7.5%, but because I took out a construction loan to help offset renovation costs, my lender says the ARV was already baked in, and a refinance would not make sense on that property either.