It's also important to keep in mind that every additional rental property you own is another potential source for legal trouble, so if you grow to a certain size(and Terrell might be approaching that size), it's almost inevitable that some tenant will get a valid reason(such as falling through a porch you didn't know was rotten) to sue you over a 10 year period.

If not finding new tenants is something of a concern for you then you will need a way to market your property efficiently.

You will need a seasoning period. 

BTW I would only go month to month for a short period of time, say their lease is up and they would like to stay for one month before relocating.What you want to do during this period is induce them to re-lease. 

I would create between 750k to 900k of increased network and $3000 to $4500 of monthly cash flow within a 2 year period of time all while keeping 100k in the bank as reserves.

I do agree on the short term aspect and that is what I am looking to do...trying to get that equity working more efficiently for me.

Period. 

But perhaps I can do that 5 years from now, when it would make since to refi these loans after the interest-only period?  

In So-Cal you have to have energy efficiency calculations and there are other costs that you don't realize until you get into it. 

Or should I hard money loan this and not worry about that period?