@Meena MallikFrom my experience, securing financing for commercial real estate involves understanding your options, such as conventional loans, commercial loans, private lenders, or partnerships.

From the financing side of things - keep in mind that conventional cash out refinances require 12 months of seasoning in order to use the new appraised value.

Finding something on Zillow and taking a swing just doesn't work unless you can pay cash for a property that does not qualify for conventional financing. 

You will live there for a year, hopefully get some equity so that when you refinance into a conventional, you can cash out, but in this market that is pretty unlikely.

@Paola Astrid, if so be the case, refi to a conventional investment loan. 

You may also put 5% down on a conventional loan with no self-sufficiency requirement. 

Thanks for the response.Another question - I'm currently at 6.875% rate conventional for a year now, is it reasonable to refinance now at 5.875%, conventional?

I sell mostly turnkey Airbnb properties both subject to and conventional, and the buyers list is deep!

Typically it's 10% down for vacation homes for Conventional

In addition, due to them being eligible for conventional non-commercial financing they typically have lower cap rate than 5 units and more.