If not, you could consider refinancing Home 2 with a rehab loan.

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I think another big miss you had is not refinancing when you could have gotten a sub 3% loan as a primary.

I imagine refinancing option 2 would be more difficult due to the higher LTV.

I am in the process of refinancing for 100k to purchase a second property.

I am only in two syndications and my GP just refinanced us and got 5.7 I think plus 3 mil cash out that is going into further reserves..

if it is a BRRRR you'd pay the seller off when you refinanced into long term debt, either conventional or DSCR.i don't know anything about the location, market, etc. but if it needs a 40K rehab, you need to push the purchase price even lower than 140K, or it will not work as a BRRRR. 

If you want to consider refinancing, that is also a viable option. 

I also don't want refinancing risk, so any deals with only 3 to 5 year debt are out for me.

Was the refinancing done and capital returned in year 3?