- Loan Type and Liability: Implications of personal vs.

So instead of paying the bank for a home equity line of credit on my first home and paying them interest, I was able to use a personal loan to myself via my employer 403b and pay myself back with interest. 

I believe the most cost effective strategy would be to get a private loan from someone to purchase with cash.

The best option is to proceed with a cash-out refinance utilizing a DSCR loan. you can grab up to 75%LTV all by using the current tenant's lease agreements to cover the debt service requirement.

When you go above 4 units you get into a different loan program that offers less leverage, has stricter guidelines, higher rates.I'd stay right in the lane you are in. 

After calculating all of the properties, the average cap rate is around 5% and the COC ROI is always negative (I am putting down 25% for a DSCR loan).

@Margarita Bozhenkova,great to finally find a local investor!

They will be snobby about the neighborhood and wouldn't do the loan if it wasn't a nice area, and only on 1950 or newer properties, but you don't have to be a Texan to get this loan on a Texas apartment building, so they're picky about the property.

Can someone share insight on a standard or common structure for loan terms when you are a private lender?

If you take over the loan subject to, which we sometimes do, it stills leaves a problem with his debt to income ratio in qualifying for a new loan.