Your numbers and your realtor's numbers are obviously more hopeful than realistic based on the evidence.You are either buying in too high or spending too much on reno.

I could totally see if this was for a new acquisition but for a cash out where I have 100% equity right now this feels odd. 

Apparently our DTI is too high for the HELOC so we can do a cash out refi but that is less desirable because it means we cannot then get the loan for the rental property despite having 25% down.

I can honestly say I have added an abundance of impactful investors to my network and had some of the most beneficial conversations to propel my investing career in the right direction, in just a 3 day span! 

Best of luck to you and your friend going forward with the acquisition!

If they used a loan for a primary residence, there may be some ability to enforce something but that really doesn't impact your decision. d) There is no effect on capital gains since they didn't use it as their primary residence for 2 years.

I think DSCR Loans are definitely in your future as you continue to grow your portfolio but probably not the best fit here:-Can strictly not use DSCR for any property you live in - would technically be possible if you moved out, leased up the unit you are currently in and provided good documentation that its legit - but this is a firm non-starter for DSCR (absolutely no occupying the property)-DSCR Rates at best are in the sixes on a cash-out refinance - so you would be doubling your interest rate at least on the current property - which could make sense but its a pretty high hurdle.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

We've helped several high W-2 wage earners take advantage of the STR tax 'incentive,' here on the OR Coast.

Using NOAA sea level rise forecast tool, even with a 10 foot increase (over 80 years) the property would be high and dry.