For instance, a 10% interest rate on a $200,000 loan would be a payment of $1,660 / month where as a 12% interest rate on a loan would be $2,000 / month.

Required good credit, adequate reserves, full doc commercial loan with a personal guarantee.  

@Jordyn Ohs pay off/down your Heloc aggressively and/or look into DSCR loans for future acquisitions.

We are seeing some lenders get very aggressive on hard money loans right now. 

To make it simple…the investor is trying to buy your property Sub2 and needs you to refinance it into a long-term loan First.The investor does not have to ask the bank’s permission.

I can go Home Equity Loan route: HEL would equate to roughly a $600 monthly payment (dependent on rates).

This would be in central Jersey which is still a hot market as a result of record low inventory.I am planning to do this strategy since I want to put low money down (10%) on a construction loan and achieve a quick build to lower my holding fees. 

Its your collateral, so I assume if you sell, it probably needs to go to pay down the loan.

Difficulty in getting a second loan?

We are in the process of getting the loan and down payment squared away.