@Manny Martinez FHA monthly mortgage insurance is typically 0.85% of the loan amount, so you are effectively already paying the rate you were quoted, $200 per month on an $80,000 loan amount would be about the equivalent of a 3% interest only loan, now factor in the difficulty in finding a 2nd mortgage in todays rate environment that low and assuming the refi rate you are talking about is a fixed rate, your $200 extra per month is paying down the balance of the $80k further reducing the effective rate you are paying on the $80k, all while paying about the same effective rate on your existing balance when you combine your rate and MMI... seems like it is a good move to me or at least better than finding a 2nd mortgage.

For instance, buyers normally have to pay for origination fees from the lender, insurance, appraisal, attorney/title fees etc.

You can also do a deed of transfer at closing and switch it into another LLC, may be some title fees but since there is no sale, it is not a taxable event.

So all you might end up paying would be small fees not part of closing, title, settlement, etc.example $68,457 would be $745.15 a month.Who are actively pursuing such equity loan products?

Usually you pay a fee for the option and then record it against the property so that the owner can't sell over your interest in the property.

The problem with Zestimates is it doesn't factor what it doesn't know.

Here are some factors I have thought about it.

Off MLS they probably could have gotten a survey, title insurance, and some HOA transfer fees when purchasing, so better deals off MLS, and with no restrictions for resale.   

This criteria is for 1-4 and 5-8 unit programs.I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

I think the representative you deal with is the determining factor.