Just because you get a loan approval does not always mean you should move forward with it.

I just re-read and realized you're talking about getting loans for lien position 2, is that correct?

You could likely get into a rental with a DSCR loan at 20% down, which would be similar or less in terms of DP on an owner occupied loan via conventional financing in eastern MA. 

Once the rehab was done I refinanced out of the private loan into a conventional loan as a primary residence.

If you're a single mom with student loans, a car payment, and living paycheck-to-paycheck, then $20,000 would be devastating and a reserve is critical.

We generally advise our clients to go ahead and pay the recapture rates if death is the alternative.The good news about recapture - the deductions are a deferred tax liability to you, and an interest free loan from the government.

I'm feeling most drawn to a buy and hold rental investing strategy and like the idea of the BRRRR strategy in tandem with VA loans, basically refinancing VA loan backed mortgages to conventional loans once there is 20% equity in the home.

2nd home loan How did you add value to the deal?

There's no current loan on it right now.

For example, I have a loan that's at 0.97%.