Reserves!

The borrower will need to be exceptionally qualified and have significant reserves (particularly for a jumbo or super jumbo loans of $1-2-5M++) Historically borrowers could qualify with 10-20% reserves of the amount financed, that could jump to 100%+ without significant state and federal intervention.

They required me to have reserves, experience, describe what I would do with the property and they did an appraisal on the property. 

Do you have cash reserves for capital expenses and improvements? 

I'd recommend having enough to close on the deal + rehab + $5k in reserve as a minimum. 

If you'd ask this question while still employed I'd say apply the $8500 toward knocking down the debt quicker but since that is not the case I would build up your reserves to about 6 months then begin applying those funds to bring down the debt. 

For the 10 year period spanning December 2014-2024, single-family prices in Austin nearly doubled, yielding an annualized appreciation rate of ~9.4% in that period.With inflation close to its 2% target and an uptick in the labor market, The Federal Reserve may be taking a break from rate cuts.

What ROI do you need to justify the liability and active nature of owning a rental property?

Due to the nature of the shorter lease terms, I am spending an excessive amount of time updating my Excel spreadsheet, MLS, business website, Airbnb, VRBO, and other platforms.

Reason is a Heloc generally carries a higher rate on a shorter term and "Can Never" be used as an "Asset, or for PITI reserves" which are both required when you buy an investment property.