This would allow you to maximize tax deductions at ordinary tax rates.

I live in a very desirably town in upstate NY, refinanced at a super low rate, so will keep the house as a rental.

Each property comes with its own set of risks and every investor must understand those risks and do the minimum - get 3rd party inspections, 3rd party appraisals, verify rents, jobs  and crime rates at city-data.com - before buying.

@Arshiya Taami yes, you could potentially keep the great rate in the #% range that you have and tap in to the equity with a 2nd loan of up to around 80% to use for the down payment funds you are looking for.

In reality this strategy still works, but we are having to leave more of our own money in the deal because prices are high and/or rent won’t justify maxing the cash out refinance because interest rate is high.

I had a “lender” tell me he’d give me a personal loan with a fixed 4% rate on a 30 year term at whatever amount I wanted because he would like to “build a relationship” with me. 

Life is on easy street when rates are 2% or I.O. 

The experience was really bad as I was getting 1-2 year old leads to cold call that I knew had a 0% success rate and I do much better generating leads organically on my own.

If you're expecting property owners to sell their home to you at a discount, you'll need to earn their trust - whether that be by demonstrating a successful track record with purchasing/selling similar deals OR by meeting them face to face and separating yourself from the dozens of local investors and realtors.Lastly, I'd recommend searching past posts related to this topic as well as checking out books related to your target investment strategies.All the best!

A FHA 203k Loan is where the purchase price and rehab costs are rolled into a single loan.Assuming you have a respectable FICO you can buy, with a FHA Loan (3-5% down, a 30 year amortization schedule, and a residential loan rate) AND because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC/ LLC taxed as an S Corp, or an S Corp.