If you want less leverage simply put down the funds you would use to pay down the 6.4% rate on the new property so you are at say 60% loan to value on the new house.

Not a lot of distressed sellers underwater on loans.

I'm looking to use a Fannie Mae Renovation Loan. 

Most loans are sold to those two entities.  

I see too many investors now, put a significant amount of money in rehab costs and over leverage themselves on hard money loans with low down payments, their properties are not selling and they are lucky to just payoff their current hard money loan via a DSCR refinance. 

Buy rentals if you have done that before or use funds to provide private loans if you have fix/flipped properties in the past. 

Hard Money loan How did you add value to the deal?

Purchase price: $137,500 ($44,000 in to the property... loan at $101,000)Appraisal: $180,000   ARV: $195,000Est rehab cost: $7,500Scenario #1: 75% LTV cash out refi at 4.25%...

5% down federal loan How did you add value to the deal?

For a better estimation, find a business broker in your area.For the loan options, speak with your banker and try to get involved in local real estate groups.