The reason I like the HELOC over the cash-out refinance is the HELOC pretty much acts like a credit card - you only pay (and accumulate interest) on your current balance.

The tenant problems that usually come with this will far outweigh any benefits in terms of returnsAre you going to re-finance it after purchase/rehab and after you pay off your line of credit?

The downside is when you want to refinance these properties or get loans for other properties, cars or whatever, if you buy too many of these that are a slight negative cash flow it will affect your debt to income ratio.

I am assuming the house is not in a great neighborhood.However, if he is not in a rush, I bet you can find a buyer in 150-185 range because it is still a cheap investment for out of state investors.Your main problem, you will need a cash buyer.

@A Xiong I bet not many people have tapped into AK which probably makes it a really good place to mail.

Yeah that's the idea is that I would not have a PM, so that expense is gone, so what I was thinking is even if I'm not living completely for free it would be cheaper than what I'm paying for rent now and if everything works out when I refinance so I can get rid of that original FHA loan my plan would be to find somewhere else to live and then put a tenant in the house I had been living in/rehabbing, thereby more than doubling the rental income and having an inf ROI due to the refinance. 

I have around 35% equity.Here's the problem: The first rate adjustment is coming up in July of this year, so I thought it would be a good time to refinance into a fixed-rate.

So refinance and term loan are not ideal products for me at the moment.

I was blessed to start working with a flipper that was doing this already, so I brought my own investors into his system and then began tweaking, refining, and growing it.   

Could I transfer the property back to myself to obtain conventional financing when I go to refinance it?