Just note that if you want to put the property into an LLC and have a mortgage on it, you will need to talk with your provider to see if this is possible without refinancing.

Lenders typically look for a DSCR of at least 1.25, meaning your monthly rent should cover the loan payment plus 25% more.Seasoning: Some lenders may require a waiting period of 6 months or more before refinancing, so check with your lender to see if this is an issue.If the numbers align, refinancing could allow you to recoup your $136k investment without selling.

Originally posted by @Brandon Carlson:@Chris Mason @David MaldonadoalfaroNeed a little clarification on the refinancing statement.

You can then get financing either through refinancing the entire debt stack or getting a second mortgage with the same bank that did the first mortgage.  

Is there a better way to structure this deal besides proportionally splitting the profit from refinancing (and/or eventually selling) and the rent (which we'd be paying)?

I have refinanced (rarely mind you as there are costs that take years to recoup on a refi) and am happy to see equity build as the mortgage shrinks.

Alternatively, consider bridge loans, HELOCs, or post-purchase refinancing to preserve liquidity.

I also don't want refinancing risk, so any deals with only 3 to 5 year debt are out for me.

and if you're re-financing after rehab, can you do it via another DSCR?

If not, you could consider refinancing Home 2 with a rehab loan.