So I am curious to know how many other investors have come across a touch situation where they were not able to refinance or take out line of credit on rental property because they had to wait for 12 months even though market value of the property would easily support 75% LTV after some cash-out?

I would call legal counsel for the Commission and explain those points you outlined, except the no partner part just saying my dad and I, I consult with him.

To do this, you need to have an "objective" scoring approach as outlined in this next link.http://www.biggerpockets.com/renewsblog/2008/2/9/managing-tenants-part-three-written-criteria-for-tenant-selection/I just offer to first qualified applicant and don't process any applications beyond that one.One other way to break a tie is to see who is willing to commit their CASH money to lock in the unit; you would get the full amount of money that you require to hold the unit and get paperwork (a binder, holding agreement, or lease - whatever you use) signed that shows the commitment from the applicant.

Just make sure you outline expectations, duties, how certain decisions are made.The worry is screwing things up, which is prob gonna happen on your first one if you're new.

But that does not answer your question.As outlined above we make bi-weekly mortgage payments - this has zero impact on our cashflow and will knock 3-5 years off a 25 year amortization and save you thousands in interest payments.Though we use variable rate mortgages (BTW:  all below prime these days), we do typically set our payment as if we had taken a 5-year fixed-rate mortgage.  

With that much cash you could get into a much larger property that generates much more rental income.Could you please briefly outline how to do this?

We find our own borrowers and use a broker for origination, using the process I outlined in the first thread @Steve Babiak listed above.

Do not close out lines of credit, especially the "good" ones, with lower balance ratios to credit extended for the sake of trying to improve anything.

This area is currently perfect for finding deals that aline with the methods outlined here.

He suggested we form a partnership where 25% of profits are put into a general business fund and the other 75% is split evenly between the two of us.We haven't outlined separation of duties yet and I'm curious what the duties should be aside from him teaching me what he knows.