His reason was the only thing he knew to do with the proceeds was to loan it back out at 12%, and he would be "behind" where he is now in cashflow.His proceeds would have given him options up to and including PE, but he is a simple man and in his case holding was the option for now. 

@Rae Chris, finding a "0% down" loan is hard, if not impossible today, even with your first property as collateral.  

Bankers will be asking for proof of this filing as you get loans in the future.https://fincen.gov/boi  

However, before deciding on a DSCR loan, it’s important to analyze your existing first mortgages—including their rates and the current loan-to-value (LTV).

I'm a new real estate investor just looking to get more knowledge on how FHA loans work.

Texas does have specific rules regarding home equity loans and cash-out refinancing (often referred to as "Texas Equity Section 50(a)(6)"), but these don’t prohibit homeowners from using funds for investment properties.

So I'm strongly considering adding a handful of these to my buy & hold portfolio.I understand that there's no "risk-free" method to acquiring these properties subto, but have any of you had success over the long-term acquiring properties with VA loans attached?

In 30 years the balloon payment is due to the seller and that's when the taxes are due.Coupling a monetization loan to an installment sale accomplishes the same thing but puts cash in the sellers hands that can be re-invested.

Are you aware that over 80% of Wall Street / Stock market companies DONT last that long?     

How does the transaction work between me personally and my holding company LLC?