That's a very good point taking the potential further value decrease into consideration (like when running the ARV for pricing it out to the end-buyer), so it makes sense that, like you said, it would have to be a great deal.

The more you pull out the higher the rate.

Section 8, student rental, market rate?

I don't know what his market rate rent is for that property.

Quote from @Glen Wiley: I am not a big fan of those rules - I think they are too simplistic.What will your interest rate be?

Once that extra rental started generating income, he realized the higher interest rate was just a temporary hiccup on the way to bigger returns.In your case, maybe look at a structure that keeps your best cash-flow property on a lighter refi (say 50% or 60% LTV) while you go a bit heavier on the one that’s not producing as much right now.

While not impossible, you'll be paying a much higher interest rate for the loan than with 20%+ down and also you're likely paying some points or splitting the profit if for resale. 

You can also double hack these if you have enough units and live in one unit and use one unit for your business, but of course that decreases your cash flow but increases your usability.You can also use an FHA loan to get a mixed-use property with only 3.5% down if the residential square footage if more than 50% of the total square footage.

For those who are charging higher nightly rates, where would you say your rates are vs comps to try to weed out the trouble guests?  

Quote from @Paige Corsello: Hi Bobby, the majority of my business is in Pittsburgh, PA and Florida Paige I can go 80% cash out in PA In FL I can go 75% cash out and 80% rate and term