I did market analysis to find the right rental rate.

My partner and I found that cashflow is the strategy that we are currently looking to acquire and Honolulu, HI has a very high occupancy rate.

I personally leverage, but have a large rainy day fund. 

I am interested in talking to someone about the process of funding via DSCR the acquisition of a property currently being run as a PadSplit.

Nobody knew interest rates were going to go  shoot up (and nobody knew we were going to face a global pandemic).

However, with high rates, the next mortgage would be very expensive, and a vacancy would be intensely expensive with two mortgages.

Most lenders will also look at debt coverage ratio which limits leverage at this time due to higher interest rates.

and 5 years is a long window for things to change in ways we don't expect (lower interest rates maybe??).

This works with any type of appreciating property such as real estate, stocks, etcDepending on the appreciation rate, you can potentially see asset values double every 7-14 years.Likely around 7 years if the appreciation rate is 8%Likely around 14 years if the appreciation rate is 4%If you buy something for $100,000 and it appreciates to $200,000, you can potentially take a loan on the $100,000 appreciation which would not be considered a taxable event.However, be mindful that you are paying interest on the loan and you have to payback the loan but yes, it would not add on to your taxable income.

The refi, worth current rates will severely inhibit your cash flow.