Purchase price: $105,000 Cash invested: $90,000 Property needed some serious rehab, from trees roots destroying the basement walls, to plumbing, electrical, to roofing, landscape.

If you are trying to get a cash out refi, I would think the bank would want to see the correct type of insurance for the business you are running.I do not have the mortgage yet, just the purchase agreement.

Or what are other ways I can access this equity to purchase?  

I’m potentially looking to purchase a mid-term or long-term rental property in a different state because I feel I may be able to find better deals elsewhere.

As you purchase more, your net worth will go up more quickly than the savings in interest with the other option.

It will be my first home purchase. 

Quote from @Steven Catudal: Hi all,I am looking to partner with a friend of mine to purchase some rental properties.

@Rory DarcyRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

.)- The property should be appreciating, if purchased in a good location, increasing the owner's equity/wealth.- Rents will be paying the mortgage off, increasing the owner's equity/wealth.- If you hold a rental until death, you can pass it on with a stepped-up cost basis, limiting captial gains if then sold (limited by inheritance tax limitations).Too many newbies on this site trying to replace their day job income via "passive" real estate investing w/o digging deep enough to understand how it really works.

I like strong MSA's, high rents, & low purchase prices, to maximize cashflow & cash ROI.