@Michael Hicks@Jeff Rabinowitz beat me it ... looks like it's time to recycle the house once more.

That's how they make the money on points and recycling the funds.  

And the small desert oil towns have their own RE cycles based on recessions, booms and which fields get opened and closed.Prices were not out of control late1990s.  

I know no one can predict the future....but the RE cycle graphs I have seen show the expansion cycle overshooting demand and creating a downward trend.43% sounds like a lot.  

I only recycle kwikset keys for times when I am refurbishing an apartment and temporarily rekey it and give spares to workers.

In this case you always have money left in the deal.3)You never pay PMI (private mortgage insurance) if you refinance at 80% of appraisal or less.4)In Texas (and perhaps other states) if you refinance within a short period there is a discount (40% I believe in Texas) on the title insurance for the refinance.This actually saves more than the cost of the additional lender’s title ($100 in TX) when purchased.In my case I didn’t even purchase lender’s title when I bought the house with the friendly loan and still got the discount when I refinanced.My friendly loans are with my own money, lent to a friend with a personal loan, who relends to me with a mortgage loan.Our terms are mirror image for the personal loan and the mortgage loan.Ideally the loan includes all costs, including future repair as I want to be able to get all money back when I refinance.The ultimate refinance means you have no more than 80% or less of market value total into the property so when you refinance you have no private mortgage insurance to pay.That also matches with conventional loan standards of 80% LTV for investor purchases.There is no industry norm requiring you to wait any period of time for a “rate and term” refinance so you refinance as soon as the rehab is complete.There is no law about getting a “cash out” loan immediately.That is simply the current lending standard for most lenders.A “cash out” loan is one where you paid cash for the deal and now want to refinance to pull your cash out of the deal, hence the name “cash out loan”.Unfortunately industry norms currently require you to wait for 6 months before they will give you the cash out loan which is the reason I use my “friendly loan”.In Texas, once a cash out loan, every refinance by the same owner is also a cash out loan.In Texas, cash out loans are more restrictive than refinance loans and cash out loans do not qualify under some government sponsored finance programs available to rate/term refinance loans – another reason I prefer rate/term refinancing.I recycle legal docs (promissory note, deed, and deed of trust/mortgage) that I got from an attorney that I alter for each purchase.

As someone with limited capital who is looking for a MFR for his/her first purchase, I don't really see how this financing option could be a bad thing; especially if, like me, your focus is on cash flow.If I pick up a MFR on a 5/1 or even 10/1 VA loan, recycle the profits to bulk up reserves and equity then I'm paying less to make my property a more secure investment.

These are what I like to call recycled product, which usually has a 5 - 8 year shelf life or in better terms the game of hot potatoes- who or which investor is getting stuck holding the bag.

Shipping container homes, all green/recycled materials with an industrial chic decor.  

As I have stated in my posts, proceeds will be recycled into the other holdings.