@Nate Jenks - @Andrew Postell did a great job clarifying the big challenge you'd run into pulling cash out with such a low down payment. 

The property is in a B-class neighborhood, and while I’m comfortable managing coliving setups, I’m curious about any potential nuances around refinancing and insurance for this type of property.Are there specific loan types or lending policies I should know when refinancing a rent-by-the-room property?

Some areas we push owners to invest in are West Allis, Bayview, Wauwatosa, and several neighborhoods in Milwaukee, including Riverwest, Harambe, and the East Side.

Have you decided on which neighborhoods you want to target?"

The house sits across 2 lots in a golf course neighborhood (~1.75 acers in total). 

It’s a beautiful custom home, one of the nicest in a so-so Oakland neighborhood ("biggest house in not the best area").Here’s the context:- Bought in 2014 for $590k, appraised in 2022 for $1.2m.- Located in a C- to B neighborhood—close to amenities and mostly safe but not for everyone.- Converted to a rental in 2024; initially rented for $4,750/month, but tenants moved out, and the soft Bay Area rental market has made filling it challenging.

Nice neighborhood just north of downtown Keene.

I bought it about 9 years ago as a primary residence, which keeps my taxes low.

Start by analyzing market trends and targeting neighborhoods with strong rental demand.

Don't buy in the roughest neighborhood in the urban core.