You should either buy with a DSCR up front if the property is eligible and self fund your rehab or hard money for acquisition, do most rehab to common areas with the exception of additional walls prior to refinancing into a long term DSCR loan. 

The 2 friends did not want to create an LLC with all 3 partners prior to purchasing because they wanted to use proceeds from a 1031 exchange.

Given that the industrial market is softer than the prior few years, I intend to buyout/wait until current leases expire and leverage the space into self-storage. 

It would help if you studied how your home compares to others and ensured it is priced right.

Compare Savings: Subtract the prepayment penalty from the potential savings generated by refinancing (e.g., lower monthly payments, reduced interest rates).

I am guessing in Muncie the cap rate is probably 8-12% cap rate so take the NOI and come up with a comparable cap rate to determine the value. 

I didn't walk the house prior to making an offer and prior to closing.

In your case looking to larger assets where you can effeciently cost segregate to gather bonus depreciation would be a smart move.Appreciation - Where in the country is the asset class you like growing or going to be growingAmortization of the loan - What sector or even region if you look locally for funding, is going to offer the most favorable lending so that less goes to interest expense and more to pay down of principle.Have fun with a spread sheet comparing these 4 returns from your investment with the type and location of assets you find attractive. 

Technology is a good partner the more you know on your own.You should make a list of areas you might be interested in first - maybe you lived there or have friends there, you always wanted to go there - and then compare that list to some best areas list, do some of your own research, and then use a major data tool to look.

I have worked with many experienced investors from Southern California, Las Vegas, Phoenix, Tucson, Denver, and other large metro areas in the southwest and west coast, with seasoned investors that still live in all of those great cities but have shifted most of their real estate investments out of those higher cost or higher risk markets into ours. 1) Compared to most cities in the SW and West, home prices in the Albuquerque metro are relatively affordable.