Allowing you to keep the other portion for any repairs that may come up or emergency, use it as another down payment. 

Many of them also charge fees to the tenant that you don't receive effectively taking an additional portion of what you could be charging in rent. 

All these fees needs to be arm's length rate of course and need to be documented.The interest rate is one portion of your deal.

@Steven Schafer don't fall for those tenant negative stories about PMCs.A significant portion of these tenants are really complaining about being held accountable to the terms of their lease!

Over the years, large portions of that land has been leased to large companies such as Walmart, Lowe's etc. to build stores.

We're skipping the refi portion and just leaving it as a paid off home. 

You can use a portion of the rents to qualify, but you'll still need to meet the requirements of whatever type of loan you're applying for.

That amount will have an effect on the premium for that portion of coverage of course, but shouldn’t raise rates on the rest of it. 

As long as that portion costs more than $100k exchange.

It ended up being a great deal as the sellers divorced and needed money and accepted a small portion of the loan as payment in full.