That all makes sense to me but it makes me wonder how can you be "financially free" or even just start building wealth if you are 100's of thousands of dollars in debt at all times.

I just want to get financable this year - pay off debt, save some $. 

@Shayan Sameer If you can service all debt and property expenses and have money left over then I'd say it's worth it.

If it is indeed I/O, I would just make sure you have enough NOI to cover the refi with some conservative debt sizing assumptions.

If you are using it to buy a turnkey property which needs to produce cash flow to be considered a viable deal how does buying turnkey(Little to no cash flow) combined with HML(High interest only debt) make alot of sense financially? 

Eliminate debt, establish a budget, and save.

Also, you will likely only be able to use the rent to offset the mortgage pmt debt on the rental property to $0 since you dont have any Sched E history yet. 

Consider offering equity partnerships, debt financing with profit sharing, or preferred equity, where investors get a fixed return before you share profits.

However, be careful of taking on too much debt.  

The challenge we're facing is the lack of short term rental data for the appraiser, and we won't know if it will meet the debt service coverage ratio (DSCR) requirements until the appraisal is complete.Has anyone dealt with a similar situation?