Very little documentation requirements, no income requirements, etc, just need to have on-time payment history for previous 12 months, and be lowering your interest rate at least .5%. 

Payments can be made in either 3 separate payments or in paid full around the thousand dollar range.

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.

Non-payment of rent is always the path of least resistance to get someone out in a somewhat timely manner.

But with the EOY right around the corner need something more reliable. 

Quote from @Jack Krusinski: When my rental properties are in a situation like this, I make an effort to create a structured and aggressive payment plan to help tenants catch up.

Is there a pre-payment penalty?

I hope everyone is well, I came here because I need expert advice from you guys, let me tell you my situation: I have a investment property that i purchased 2 years ago and is valued at 65k that does not have any mortgage and that is already paid off, I want to use that property to buy another one for down payment , the question here is: What is the best way to do it. a heloc or a cashout refinance and why. your response will be appreciated :)

If you aren't going to assume the loan as discussed in #2, then you could do a "Subject To" deal where you just take over payments BUT that is really only good for the seller if they are facing foreclosure.

You can also take advantage of lower down payment loan products rather than going 20-25% down on a conventional investment loan.