And your generally not always but generally dealing with folks that only own a single property or very few not the sharpest tool in the shed other wise they would not be letting wholesalers step in and make more than a normal fee.. 

You can always sign a contract to buy the remaining properties anytime with a closing date scheduled for the future (not sure why he would want to do that though since we don't know what will happen appreciation-wise).

Holding onto your home as a rental could be wise, given your low mortgage, strong equity, and rental income potential.

That said, if you can comfortably handle the additional down payment and monthly payment consequences of a higher purchase price (and the lenders agree), and you have a few different good options with the property then it could be a wise investment.By a few good options . . . you want to have some exit strategy other than STR that will work in case the something happens to make STR uncouth in your area. 

Quote from @James Wise: Quote from @Ximei Yue: I am a Newbie.Here is a summary of what I want to ask some advice.

Penny-wise and pound-foolish, indeed @Steve Hiltabiddle.   

Quote from @Chad Verde: To clarify, $200k in equity so estimating cash out refi around $130kLike some wise advise here, this is not cash this is equity.

Sorry for the following Contrarian advice, but you're not a 5 year old so:The only reason to buy a personal residence (Home) is because someone is forcing you to.Usually, this person is called your Spouse (which is Latin for someone who forces you to make horrible financial decisions then criticizes you for them endlessly:)perhaps DON'T buy a home, just rent something affordable and invest the 20% or in your case 50% into the stock market (sp500 16.1% yearly return last 15 years, 11% last 50 years, 10% last 125 years)remember, your RENT is your maximum monthly housing expense, but your Mortgage is your minimum or starting monthly housing cost, it always goes up from thereI've, owned 2 personal homes, 100% appreciation in 6years on #1 and in 7 years on #2, (I timed our market perfectly both times), with 20% down and very low mortgage rates, but after honestly calculating all expenses, only made about 5-6% a year "investment wise".

Quote from @James Wise: Recently a prominent marketer of Cleveland rental properties and property management services named Bob Prisco was exposed for being less than honest in his business dealings and posting activity here on BiggerPockets.

Quote from @James Wise: If you're gonna lend you need to be 1st position lien.