Will ask lenders bout prepayment penalties and refinancing options as well.Alex

I live in a very desirably town in upstate NY, refinanced at a super low rate, so will keep the house as a rental.

@Bill B. 195 originally refinanced to 224.

here are some ways to get cash flow:-tax savings on other sources of income from your real estate shielding it-selling an underperforming property and doing something with the proceeds-raising the rent on a property that was breaking even-refinancing a property when rates fall and using the tax free incomeso again, you need to have a broader view than "property X made $37 after all expenses in March." hope this helps

One concern I have is knowing when and how I should go about refinancing an FHA loan.The reason for an FHA loan is because though I have enough for a down payment I am not ready to commit all of it.

@Paola AstridIf you’re considering refinancing an FHA loan, it’s a great way to lower monthly payments or gain more flexibility.

The return on equity is probably very low considering they are paid off so maybe explore refinancing or selling the lowest performing one(s) or your biggest headaches to reinvest in more lucrative deals.I noticed you also used a metric of number of rentals to attain your goal rather than $$$/month.

As rates go up, cashing out and refinancing is very unappealing.

FHA allows the construction or renovation of an ADU on the property by refinancing into a 203k loan, but the property must remain your primary residence.This stuff is subject to change, lender specific, and subject to other factors.

I recall reading about it in CNBC...The quest for solid returns in our current market might feel daunting with interest rates where they are, but the good news is.. if you find the right deal and set clear criteria.. like a minimum cash flow target, or a plan for eventual refinancing.. your numbers can still work out.