@Maria Espinoza, beyond vacancy, which I was actually thinking is tight, but probably close (average tenancy 2-3 yrs and 2-3 week turn around between tenants, is not far from what I have seen), but I agree with Mike, most lenders will not use 2% and default is 5%.The bigger potential issue I see is your repair and Capex reserves.  

Boiler is 30ish yrs old and probably is on its last leg.  

If you really wanna get crazy, there are hybrid amortization options as well. 30-yr terms, but I/O during first 5 yrs, then converts to 5-yr fully amortizing loan (no balloon).

A friend of mine owns 4 units and has been producing positive income for 3 yrs now.

I have not looked at the difference between keeping long term vs keeping for 7 yrs before large maintenance items start occurring.

If your tenant stays for 20 yrs, are you going to hold their rent over that time? 

Currently have: 2.999% interest rate on 170K loan of 300K property, 30 yrs fixed (non owner occupied fourplex, purchased 2 years ago)Thinking about this quote: 4.375% with 1% origination fee or 4.875%, 30 yrs fixed, cash out refinance, attempting to pull about 150-200K equity (estimating property value is now 425-450K) out to purchase newer SFH home or duplex to house hack.The rents from fourplex total about $3100/mo.My goal: To purchase a duplex to househack or SFH property to live in for a year with cash from cash out refi.What are your thoughts on this?

Our intent is to be long term buy and hold investors Phase 1: Construction Construction time is ~12-13 monthsWe’ll fund construction with a commercial loan @ 4.99 fixed for 20-yrs w/ 25% down (~67K after closing costs / 3-4 draws during construction at interest only)Additional carrying costs include insurance, property tax, etc. (~$200 - $400 monthly)Current net cash flow from existing REI will cover construction time related carrying costs Phase 2: Post Construction / Tennant Occupied Rent the three units for $1200 each unit / $3600 total (our team feels we could yield ~$1300 – $1400 per unit present day.

Rents could be higher but the tenants are great and have been there for 9 and 18 yrs respectively.

Talk to a broker about this since some loan programs require you to have landlord-ing experience of 2 yrs.