You also don't have to max out on LTV, you can borrower as much or little as you'd like. 

I felt really bad for the borrower because he never had insurance on the property.

Fannie Mae loves there is this opportunity for the borrower to supplement their ability to repay the mortgage.

So borrowing now before the market starts to drop may be a good move.If you qualify it may be wise to refinance both properties so that you are cash fluid. 

Yuki,When you say lenders credit are you referring to the yield spread/margin given to the buyer/borrower when they choose a higher rate? 

A lot of folks advise against borrowing against your primary, but then again, a lot of folks do it.

The International Monetary Fund (IMF) has published the results of research conducted into how lenders are likely to be doing their business in the future, and what new information and personal data these companies plan to start asking from borrowers in order to determine their credit score.The biggest takeaway is the seemingly inevitable shift from merely accessing credit information to also incorporating people’s online behavior into the process of deciding whether to lend them money necessary, for example, to buy a house.Compared to the way the system now works in most countries – these changes, which are expected to be coming soon, look fairly invasive privacy-wise, and with no “vision” of proper safeguards.

We are looking into borrowing against the house to invest in another rental property later on down the line.

For now there are many lenders that look more at the asset than the borrower, allowing you to refinance sooner rather than later.

Most 401k's let you borrow up to 50% of its asset value, so you can still have 100% of the buying power of your ten thousand its just in a 401k.