That claim can not be even remotely true.  

This could push your rent up to $7,500 or even $8,000, which would make your cash flow positive.In summary, the refinance could give you a good return in the long run, but the negative cash flow in the first few years is a concern.

@Jay Hinrichs exactly the risk is even more than traditional development and the profit is actually less with more operational headaches.

If it were me, I would like consider refinancing only 1 of the 2 properties now and considering the second later in 2025 or even early 2026 when rates potentially soften.

Quote from @Ruben Diaz: Good evening team!

Hardly anyone can prep properly, mask or dropcloth properly, cut in around trim and windows, get even coverage, etc. 

Even first-time flippers should be able to get these terms: Application/Credit Report/Upfront Fee: $0Appraisal Cost: $0Down payment: 10% of purchase price (= 90% LTV)Rehab funding: 100%Interest payments: Paid only on amount drawn (non-Dutch)Prepayment Penalty: $0Reserve Requirement: $0Max Funding: 80% ARVMax Funding 95% LTCClosing time: Measured in days, not weeksI hope this helps. 

Ask lots of questions, read as much as you can, and then ask even more questions.

So, landlords of exempt units don't even have to be concerned at all.   

I work with a turnkey provider in Little Rock, and they are offering a 5.99% on all of their properties, even the new construction.