Some people love that as the initial numbers look good, but probably over the long term they get tired of the common issues landlords face.It's not that hard typically to find a move in ready property, or even to find one that needs minor repairs, where you can capture the equity yourself vs the person selling it to you. 

Today, adjustable-rate borrowers qualify based on their ability to cover a higher monthly payment, not just the initial lower payment.”In simple terms, banks used to give loans without checking to see if buyers could afford them.

You're going to have other trade offs like higher interest rates, shorter loan terms (like 3 or 5 years) and maybe more lending fees. 

The rate and terms on the 2nd lien position if you can find one may also not make it worth the cash out.

If it was me, I'd look at it this way:1) Paperwork: I can hire an attorney at an hourly rate to write up a purchase contract, etc. 

Some hosts go the mid-term rental route (30+ days) to stay compliant.

Is your tenant month to month or in a long term lease?  

If this is a long term hold you'll want to have finishes that match comps, but are also still very durable for tenants.

The contract didn’t state it was 20% higher?

Wow, so many accomplishments in such a short time!