I like to sleep well at night making an honest buck.

https://fox59.com/news/officials-confirm-two-dead-in-tenness...This is a state fire code on sleeping more than 12.

One year, one of the barn cats found its way into the cellar to sleep on the warm furnace ducts (we lived in snow country).

See if @Jay Hurst has a better financing option for you in Texas and get out of this mess while you still can without losing a ton of money and sleep would be my recommendation! 

Some sleep better at night with zero debt, while others love to use leverage and are willing to take on more risk.Community banks right now will go with 80% LTV.

I would not lose sleep over this.

So even if the cash flow is only 3% or 4% cash on cash, that’s enough to provide a protective layer to cover unexpected items.To me, the cash flow is NOT to put spendable cash in my pocket NOW but rather keep the property self supporting while it increases in value over the long term.In addition, every property a purchase has a cash reserve fund - call it my rainy day fund or my Sominex account (ie I can sleep at night knowing if the furnace goes out I have $8,000 in my reserve fund to replace it.)One final note, I have found once one reaches a certain net worth, cash flow no longer is a concern, there is always as much cash flow as anyone wants.Final note, who will have more cash flow someone with $1M investible cash or $3M investible cash?

We intend to use this space as an office and or small sleeping quarters.

As I suspected and found here on BP, it's the same as just applying additional payment to your loan, despite what he was saying about your money working while you sleep because your checking account interest rate is zero, blah, blah, blah.

If it's tight or you're uncomfortable with the tenant you have in there from a confidence perspective, especially if this is a first deal, maybe meet in the middle and get a lender at 75% or 77% (doesn't HAVE to be at 5% increments) that wont make you season, and leave a bit more money in the deal, but sleep better.Overall, if I cash flow well, have/keep reserves, and am comfortable I fixed everything in the house, I like to max out the LTV on refi.