Your refinance loan amount isn't enough to pay off your initial financing.

I assume that I don't actually have to pay the capital gains until the principal repayment exceeds my cost basis, which on an amortized loan would be quite awhile (assuming they don't refinance and pay me off altogether).

@Martin YatesHere is the direct wording from DSCR guidelines about the situation, specifically regarding seasoning:"Properties obtained through inheritance or divorce are eligible immediately without ownership seasoning to use the appraised value for a cash out refinance." 

Basically.....You invest the $50k-$60k up front for a single-family build or $100k for a duplex build.BTR company creates an entity together to own the asset.BTR company secures lending and builds out the asset over the next 6 months.Once it’s complete, BTR company refinance out and you get your $50k back + 16% at that point (or $100k + 16%)You retain 30% equity in the asset going forward (and therefore 30% of the cash flow or profit upon selling)Exit: 6-7 years once BTR company packages it and sells it to 4.5 Cap rate to Wallstreet. 

That will ensure there will be built in equity that you can figure out a way to suck out equity via a cash out refinance, line of credit, cross collatorization, or selling the property.

You don't need to know everything to get started; you need a foundation to build on and the rest will come through experience and then refining your education.You can build a basic understanding of investing in 3-6 months.

You also have DSCR that "Does Not" use income - No income, No tax returns and just uses rents to qualify for purchase or cash out refinances.

You can see the cost perspective and the equity available to pull out through a "Cash out refinance" or Heloc.

What kind of loan(s) did you use for the purchase, rehab, and refinance?  

The most popular way to speed up your real estate growth is to buy fixer-uppers, rehab them with mostly sweat equity, rent them out for significantly more than 1% of your total purchase price per month, and then refinance the property to extract as much money as possible for your next down payment.It’s doable, but you need to find the worst property on the nicest block, as this will play a significant role in your refinance discussions later.Let me know if you would like to chat more and learn about the Toledo market, which is well-suited for what you are looking to do.Best regards,Phillip DakhnovetsGuardian Property Management419-740-0370