People reinstate the loans and do loan modifications all the time.

These properties can provide cash flow and diversification while qualifying for favorable residential loans.

Your loan would be on a different property so no financing on the property you are buying. 

You could use a HELOC, but with VA loans you have an allotment so you can get loans on more than one home depending on how much bandwidth they give you.

Cash out refi only if the rental income significantly exceeds the monthly payment and you want liquidity to invest elsewhere.2.You can maybe do a HELOC if you want a smaller loan that doesn’t involve refinancing the entire house.3.

So I told the old owner I will trade you the house and landbank the loan..

I will secure the loan for everything.

I initially got a variable loan.

Long term buy and hold RE in good locations is probably one of the lowest risk investment vehicles IMO, similar to blue chip aristocrat stocks except even less risky because even long-established companies can go out of business but real estate very, very rarely ever goes to zero. 

I have 9 loans currently so looking to do a conventional loan on my next depending on that process.