I imagine refinancing option 2 would be more difficult due to the higher LTV.

So I have my house that refinanced in 2020 for a 15yr 2.5% rate and we have about 56k equity.

My name is Ashley Kroft and my mother-in-law has a property in El Paso, TX that will be refinanced soon to purchase my husband and I's first rental property.

If you decide you need to hold the property it makes refinancing either impossible or expensive. 

I had to start the eviction process, but fortunately, they left a little over a month after their lease ended—just before it went to court.These challenges reinforced the importance of tenant screening and clear leases, lessons I’d carry with me throughout the year.Summer: Refinancing and Big ChangesSummer brought a mix of wins and challenges:I began having issues with the garden unit tenants, which would escalate later in the year.After learning from the screening mistakes I made with the garden unit, I updated the third-floor unit and rented it to great new tenants.

Hey India if you use HML do you plan on refinancing?

When finished, I re-financed and paid back all my friends and family + interest in 10 months!

Quote from @Fernando Martin-Gullans: Hey y’all, I’m a retail investor with 2 SFH rentals worth a combined ~$650k looking to utilize some of my stored equity to buy more out-of-state properties, but I’m not quite sure how best to proceed given that my interest rates are incredibly low (leaning me away from refinancing) and neither property is owner-occupied (which I believe prevents me from using a HELOC).

Always validate what you read online, things change, I could be wrong, but use this as a starting point in your research.What Is an ADU?

The HML covered 100% of the $32,500 rehab budget through drawbacks.Refinance: Post-rehab, I refinanced into a primary mortgage, creating 25.5% equity in the property.Future Financing: I plan to leverage the property with a HELOC to access up to $86,000 in capital for future deals.