Additionally, the costs of fixed rate seconds and HELOC's could come down from the double digits or make cash out refinances more feasible to tap equity for those with low first rate mortgage loans. 

I would use an FHA loan with 3.5% down and I would move refinance and move out (to rent the entire house) when I am ready to look for another investment property. 

The two biggest parts of the BRRRR strategy that I lack knowledge of are the rehab and refinance portions. 

The options considered included: Forbearance & Refinance – We considered providing the borrower with a forbearance to delay interest payments for six months while keeping the loan in good standing.

Being that it’s seller financing it’s a balloon payment at 5 years so I will need to refinance out of the loan before the 5 years.

You could even use this strategy with your extra cash to buy in cash, do light remodel, and then cash out refinance most if not all your equity. 

However, we can’t afford to cash out refinance at this time.

Judicious use of leverage (debt) when the property will still cash flow positive after debt service; when there’s enough equity left in the property to refinance if advantageous, and when sufficient reserves are held to cover vacancies, recessions, and unexpected repairs5.

Congrats on your graduation  Rolando.In my opinion you should go for a conventional FHA  than a 203k loans  because 203k has extra fees  of your 3.5%  they work kind of like hard money lenders the only think is that the rate is lower than a hard money lender but higher than a conventional FHA  I just bought my first house here in Oakland California using 203k loan which works for me because I had  to renovate the entire house $125k of renovation with a rate of 7.6 and is been 8 months and I am ready to refinance to Lower my payments and the rate .In my opinion is worth it 203k loan if your repairs are over 100k  for all the benefits that you get with the city and sewer company. 

Build - rent - refinance - repeat