Hi Ashely,For a cash out refinance, I haven't seen one that can do better than 75% LTV personally.

You also get the appreciation on the asset during the course of ownership, which is cash back to you at closing when you sell or refinance.

Theoretically investors can expand their portfolio with little to no cash out of pocket, and ideally refinance when and if rates decline. 

Since so much of the return was frontloaded in the first two years, IRR will not improve by holding onto the properties.The only way to tap into equity is to refinance or sell the property.

Hey @Ryan Jacques     If your intention is to refinance after year 3 when your prepayment penalty is up, then I would go with the lower rate.

MY PLAN: My plan was always to refinance the mortgage when rates dropped in the future, so my hope is that my mortgage would eventually come down to around $1,500-1,550 which then makes my numbers closer, as rental prices increase over time.

If you have a loan, you may wish to look into due-on-transfer clauses, as well as whether turning it into a rental requires you to refinance to a non-owner-occupied loan/rate.If you're going the umbrella insurance route, perhaps see if it will cover you for several things including just the routine slip and fall (like mold or earthquake).

The old saying is "You marry the property, but date the rate" meaning the property can be held a long time but you can refinance over and over.

-you likely won't cash flow at all when you refinance, and you might even be negative. 

Just be sure to refine your search using filters like "pre-foreclosure" or "foreclosure" to narrow things down.