Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Will getting this second home loan right now, affect me negatively when I go apply for the construction loan in the next 1-6 months?

Sure there’s some truth to it and you hear a lot of people say it, but it’s pejorative and negative.

The negatives are what you will read in the articles. 

Once that phase is complete, I’d transition back into long-term holds.As for the cash-out refi, without at least doubling the rent, I’d be in a net-negative position each month, which doesn’t seem like a worthwhile trade-off.On the tenant side, I agree with your point about the business aspect—it’s something I’m working on coming to terms with.

Quote from @Alexandre Pita: I'm an investor in Portugal but for now I only have rentals.

But this month I just used Gosection8 for two vacancies since I only wanted section 8 tenants.  

Once they cut the govt spending that is going to equate to negative job growth most likely for periods of time.

Code enforcement is now telling me I only have a 3 unit property, so I have to kick my tenant out of the newly upgraded unit.