Do you want to occupy it a couple weeks a year? 

You don't want to lose your rate on the house you are living in now unless you want to sell it so since that is an owner-occupied, you need to stay there and save up the 20 percent for the second property based on what you said.

A colleague of mine has bought two properties owner-occupied back to back in Arlington (with a 5% rate and a 7% rate) doing basement conversions and renting rooms, lowering his effective monthly payment on each property to sub 2K each time.

For example in many jurisdictions I can STR units in a duplex but cannot STR an ADU (some jurisdictions will let you STR if you owner occupy).

If the home is occupied, there's usually 1 group showing scheduled, so you'll want to come prepared with your comps and ARV. 

DSCR is available for an LLC to use for purchase and cash out refis as long as you never plan to occupy the property yourself.

For example in many jurisdictions I can STR units in a duplex but cannot STR an ADU (some jurisdictions will let you STR if you owner occupy).

Occupied with inherited tenants or vacant?

However, we don't see prepayment penalties on owner occupied loans.

@Kris Lou Be careful with agents as 95%+ of them really only know how to handle owner-occupied transactions.We don't do biz in Indianapolis, so this is unbiased info we hope you find useful:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?