The more efficient solution might be to purchase from Grandma with the 25% down..you ca use the income to help qualify and obtain gift funds or other sources for the down payment.

That comes with the expense of the refi - but if you were already cash-flowing on your new purchase, you will only improve your situation when you refi. 

I work for/with a very investor focused lender and they support many of our luxury STR and second home coastal purchases for my client's in Oregon & California and they just waived the appraisal for a $800K purchase!

Purchase price: $135,000 Cash invested: $130,000 Sale price: $349,900 Better than new!

I'm not aware of a state to state effect on the STR Loophole, several clients have utilized purchasing in Oregon with us from out of State.

Purchase price: $475,000 Duplex, move in ready, one side had a renter.

My business partner has purchased large parcels of land, but never developed homes.

As you mentioned, you can depreciate the improvement value over 27.5 years for residential property.So, to calculate the depreciation recapture after 5 years, you can use the following formula:Depreciation Recapture = (Original Improvement Value / Useful Life) x Accumulated Depreciation x Time HeldIn your example, it would be:Depreciation Recapture = ($200,000 / 27.5) x (5 years) = $36,364.36So, after 5 years, your accumulated depreciation is approximately $36,364.36.Now, when you sell the house for $400,000, the profit you'll have to consider for tax purposes would be:Profit = Selling Price - Adjusted BasisThe adjusted basis is the original purchase price minus the accumulated depreciation.

Would like to purchase my third investment property for around 850K property will cash flow me around 3500 a month I have just under 110k in liquid for the down payment what’s the best route to be able to gather the rest of the cash for the downpayment which if it’s 25% downpayment I’m looking for another 110k loan what is the best route to take ?

Seems to me that selling to an organization like Habitat for Humanity might help you ensure you have a relatively consistent buyer, assuming the parcels you purchase are in desirable areas for them and meet their acquisition criteria.