The drawback you have to fit "in the box"; 20% down +, excessive reserves requirement, specific restrictions on tradelines, assets guidelines, DTI under 43%, owner occupancy etc.. if you are open to ARMs you will have a bit more options..Also need to consider the type of property - if condo/condotel banks might not finance at all.. there are many factors to consider we do have some good outlets for jumbo, would be happy to review your scenario and give you a quote.

Principal & interest = $2,623/month.

The remaining principal was about $450,000; the stated interest rate was 11%, and the note had 8 years to run with a balloon.  

Hence I believe the equity in that house is about $200K ($50K paid off principal + $150k of price increase).I would like to take out about $100K of equity to buy an investment property in Texas.How can I do that?

Principal & interest = $2,623/month. 

Loan amount: $135,000 - $40,500 = $94,500Using a mortgage calculator, we can calculate the monthly mortgage payment:- Principal and Interest: - Loan amount: $94,500 - Interest rate: 5.5% - Loan term: 30 yearsUsing the formula for a fixed-rate mortgage, the monthly payment is approximately $535.89.Next, let's calculate the monthly cash flow:- Monthly rental income: $995- Property taxes and insurance costs: $101Monthly Cash Flow = Rental Income - (Mortgage Payment + Property Taxes & Insurance Costs) = $995 - ($535.89 + $101) = $995 - $636.89 ≈ $358.11Now, let's calculate the ROI:ROI = (Annual Net Income / Total Investment) * 100Annual Net Income = Monthly Cash Flow * 12 ≈ $358.11 * 12 ≈ $4,297.32Total Investment = Purchase Price + Closing Costs = $135,000 + $5,500 = $140,500ROI = ($4,297.32 / $140,500) * 100 ≈ 3.06%So, the monthly cash flow on the property is approximately $358.11, and the ROI is approximately 3.06%."

suggest you start with Dave Ramsey principals ... then move out from there.there is some big huge fallacy  that Real estate is going to let you quit your job and your going to have all this time for the kiddos etc.this will never happen in the short term with rental property.. you build a nice base for retirement in 30 plus years for sure.. but for short term replace your income and have all this free time you need to make transactional income with big hits.. your not going to get their with 200 to 300 a month cash flow on a levered up rental . 

Most folks would do a wonderful job of losing most or all of the principal. 

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

It's always 7.9% on your principal no matter how much appreciation you gain, but the S&P 500 compounds.