The purchase price was $262,000 and I borrowed $212,000.  4 units were rented and 1 was vacant so I moved into the 5th unit while I fixed it up.  

They want to see 25-40% equity depending on the deal and the borrower.

Assuming asset inflation will continue to exceed the cost of borrowing, would you rather own less or more real estate? 

They're really focusing on the property itself and borrower liquidity.

Fannie Mae states the following:Fannie Mae’s April 3 clarification of the “Second-Home Rider” shows that homeowners are allowed to rent out a second home after one year of ownership and that short-term renting during the first year is also permitted under specific conditions The following eligibility requirements apply to second home Mortgages:·The Mortgage must be secured by a 1-unit property·The Borrower must occupy the second home for some portion of the year·The Borrower must keep the property available primarily (i.e., more than half of the calendar year) for the Borrower's personal use and enjoyment·The Borrower may rent the property on a short-term basis provided that the property is not subject to any rental pools or agreements that require the Borrower to rent the property, give a management company or entity control over the occupancy of the property, or involve revenue sharing between any owners and the developer or another party·The Mortgaged Premises must be in such a location to function reasonably as a second home·The second home must be suitable for year-round occupancy with the following exception: a second home with seasonal limitations on year-round occupancy (e.g., lack of winter accessibility) is eligible provided the appraiser includes at least one comparable sale with similar seasonal limitations to demonstrate the marketability of the subject property.

As an example, on Friday I purchased a duplex for $125,000, I borrowed $90,000 and put in $35,000 of my cash, 3.5% interest, 30 year amortization, 30 year term.

I would recommend borrowing no more than 70% of the value of the property. 

You want to see something that has low or no seasoning for a cash out refi or that may require low amount of documents.What is your draw fee & benchmarks for the repairs portion of the borrowed money?

I can tell you from personal experience that it happens regularly, that's why lenders generally require the borrower buy the lender a title policy indemnifying against actual loss caused by lack of priority. 

WACC is an internal measure of your borrowing costs.