There is a huge variance in underwriting guidelines, programs, rates, etc.Send me a message if you want to dive in to the scenario any more!

Many Midwest cities still meet the 1% Rule - but, with Class C properties.

You could be making real money by investing wisely.Also, I wouldn't be sure that Cali will always appreciate at the rate that it typically has.

At that point, it's worth researching and finding a solution that better meets your needs.

Or would a cash out refi at a higher rate still be worth it?

I currently work as a consultant, on a project that deals with a lot of risk assessment, identifying pain points for my client in areas of improvement, along with these types tasks, there is a lot of tracking and monitoring of multiple different requests that are going on at one time, as well as having to manage my team and personal to ensure we are meeting all necessary suspenses.

Purchase price: $317,000 Cash invested: $30,000 Short term primary -> long term hold with a 3.25% interest rate.

I do own a rental property in Texas, interest rate is 4.8%, and it has a lower mortgage left to pay off. 

An unsophisticated borrower can focus on their mortgage payment vs. rental rates instead of what the property is worth.In the example above, the $85K sale price could be justified if the seller did an extensive rehab, but they wouldn't be trying to sell the note for $40K if that was the case.

The rates are the same as capital gains but it is treated as "income from passive activity" and can therefore absorb rental losses.