To us, we like the benefit of having tenants there so we can have rents to help qualify for the loan for buying the place, and if we occasionally have to deal with a crummy one, that's just part of the business.

Hi William - just wanted to share an article I wrote about DSCR Multifamily Loan Options and Pros and Cons for this exact need (5-10 unit multifamily). 

Who doesn't love Flordia and second home loans rock with only having to put 10% down?

Most commercial loans are based on income. 

They promise you’ll ‘get rich quick’Real estate investing and wealth building is a very long-term game that comes with a lot of risk and often requires a significant financial investment.

So I started trying to get creative on how to create a win-win-win for all.Here’s how it went down:I got the sellers to agree to an asking price of $180k, a full $40k over what they originally wanted.In the offer, we included a seller credit of $34k.This strategy allowed me to cover the extra commission for both the buying and selling agents and ensure the seller got exactly the cash they wanted should they have sold it at 140k.With the seller credit, this reduced my total out-of-pocket expense to just $6k.I used a commercial DSCR loan product with a local bank.

You may want to explore cashing out, and structuring a reasonable loan term with your current strategy in mind.

It means you are a financially responsible individual and in the end what you are looking for is a responsible tenant.

Are there other types of loans people use to pull equity from their rental to purchase additional properties? 

What can I do next to increase my portfolio and become totally financially independent ?