@Dmitriy Fomichenko agree with you about some specialized lenders lending non recourse loan (as i said at second half of my comments ) with a lot of down payment  and higher rate (all about risk adjusted at the end , pay now or guarantee it) ... example : a good commercial rate as of last Friday (Oct/11th ) would be 4.5% APR/25/long term fixed/1% Origination /1 yr IO/20% DP ... highly doubt that those non recourse lender will match a loan similar to that ... 

Most lenders, no.Best rate lenders in the universe:1 & 2) No, they assume fully drawn, fully amortized (if it's 10 years i/o, 20 years amortized, these "best in universe" will assume a 20 year term for qualification purposes), might even hit you with a "payment shock" factor if it's currently not drawn.An independent mortgage broker in your area will be able to show you both options, they have no reason to be biased towards one or the other, by law they get paid by the lender the same for bringing the business in the door no matter your rate.

Having a 5yr IO gives you an extra layer of protection considering if you bought right.

It seems like debt is out of the question for you since the CF is already thin and with the upcoming IO period expiring, increasing the monthly payments will make a bad situation way worse. 

This gave us a nice opportunity to run the new plumbing ground work, install a backflow regulator on our sewer line (nice to have on a 1915 house), and move the front and back sump pumps into a better position-Framed and finished the basement into the Airbnb unit-Dug the backyard down and installed a retaining wall at parking pad as well as a small deck and set of stairs off the rear entrance to the house that leads down to the parking pad-Opened up the main floor and removed a few non load-bearing walls. 

These are also great rental properties as all are CFP $300-600/month without renovation based on 30 year fixed calculations and $600-1000/month on the ARM (I/O) calculations. 

These are also great rental properties as all are CFP $300-600/month without renovation based on 30 year fixed calculations and $600-1000/month on the ARM (I/O) calculations.

What you have on the table for the structure sounds pretty good, as most of my clients who do this strategy, usually do a '2-step' process with different lenders - take down property/rehab w/ fix/flip type loan (higher interest I/O basis, lending on some type of ARV) and then they refinance with a longer term portfolio/alternative money (some type of ARM, lower rates). 

I was playing my iOS game on a trip back from AZ and it was non stop "we're coming to your town".   

@Justin Lee if you have 3 properties or less (including a primary) and the duplex is held in your name (not in an LLC) then you can get a Heloc on a rental through Pen Fed at 80%LTV, variable rate tied to Prime + 1%, 12 year draw, you choose I/O or P/I payments.