The DSCR loan would allow you to qualify based on the rent you are collecting and get up to 75% of the value (175 x 0.75 = 131.25k, minus 20k payoff and closing costs.You could get a line of credit or a bridge loan against it to borrow money, but it would be higher interest.

Unless it’s specified by your loan type or lender, you don’t have to.

For example, I met an agent who is managing an Airbnb with a similar situation.

Platforms like BiggerPockets, local REI meetups, and Facebook groups can connect you with investors seeking opportunities.Joint Venture Partnerships: Consider partnering with a seasoned developer or investor who can provide the capital while you contribute your vision and operational effort.Hard Money Loans: If you’ve identified a property, some hard money lenders may fund the purchase and development based on the future value (ARV) of the project.Crowdfunding Platforms: Sites like Fundrise, Groundfloor, and RealtyMogul cater to real estate developments and could be a great way to gather capital.Seller Financing: If the land seller is open to it, negotiate terms to finance the purchase directly with them.2.

As far as your next property, if you are already considering moving you will get better loan options + interest rates if you decide to live in the next property and rent out your current house. 

@Nick AmDepreciation is a ZERO % interest loan.  

Sounds like you are getting hit with a lender who has overlays and possibly miscommunication between the loan officer/processor to the underwriter.

In 2019 I purchased a Duplex in New Orleans for $219,000, I was able to refinance during Covid to a 3% interest rate. After I left NOLA, I was able to rent each side for $1,295 through a property manager taking 10%. T...

Ask your lender about a bridge loan....

Anyone had a similar situation?