Do you buy homes that do not satisfy this rule, or do you just make lower offers so that you adhere to that rule?

You’re able to learn the basics of a real estate investment with lower risk and build equity at the same time.

In terms of the second scenario, the upside I see is the option to get a different kind of loan (say, FHA with a lower down payment and other assistance programs for K-12 educators like me) since I'd be getting a new primary residence instead of a second home.

If rates drop in the future, refinancing again could lower your payment, but it’s good to make sure the numbers work now just in case.

By year two, he refinanced to lower his rate and dramatically increased his cash flow.

Hello Vivian, there are a lot of opportunities to invest in Tulum downtown, the beaches are occupied only by hotels and restaurants, this is the best time to invest in a pre construction unit at lower price than the finished units with a difference of 25 to 30% bellow market price, check this website to view some opportunities www.tulumrealty.net

It is in a northern MI Downtown area (opp zone) in a county seat with 2 hospitals, had it re-zoned to mixed use, and is considered blighted which makes it eligible for MEDC funding of up to 50% of project cost.It is 8k sqft (4,000 each level) with the lower level being a walkout (top level is street level with sloped drive down to the rear of the building).

As an example, although we are “hard money” lenders we seek lower rate long term financing for our real property investments.  

Obviously right now is a lower valuation, but there is always ways to take advantage of the currency spread. 

While cashing out more equity might seem appealing, it will result in a lower cash-on-cash return due to the higher rate and LTV.