The bank can call the loan due (due on sale cause).2.

Some DSCR loan programs require no reasoning at all!

I have a hard money loan through a family member and that is included in that 700k. 

Dear, BP fellows, I have been looking for investment property loan info for AL and recently get quoted with 30years interest rate 7.625% with 2.125 discount point.

Whichever strategy that you choose, run your numbers, and definitely consider all the other benefits of owning real estate i.e. appreciation, loan pay-down, potential housing expense decrease and/or cash flow. 

The refinance will get our down payment back, along with the current mortgage and renovation loan paid off.

are you planning on keeping the private money loan for the long haul or are you going to refinance once rehabbed/rented?

Im looking at 7% however I think a better safe guard for me to have enough skin in the game is to move the sales price higher just in case he decides to pay off the loan earlier.

You can still get private money loans, cash out refinance or home equity lines of credit to fund your purchases, but just have all that worked out before you make the decision to purchase.You might be asking what are the negatives.

@Beth Anderson, You can use a FHA 203k loan to wrap renovations into the loan.