I started letting them know the requirements upfront.

Cash flow is the main goal!.

Part of my pre-approval process is to scrub the borrower's bank statements for these and find out up front what they are for proper DTI calculation - I almost had a file fall apart last year because of Affirm. 

You can do a ‘cash out’ refinance on the rental home as a permanent fixed 20-25-30 year loan to pay off the Heloc on the primary and most likely the equity line on the primary permits a ‘re-draw’ to utilize again. 

Doing a cash out refinance to recoup invested dollars is more difficult due to home values not increasing at 15% YoY.  

Cash.

We've done this personally on refis with just a lease,  but through a local credit union so I'm sure it's different. it seems like there is a lot of potential problems this would create for the owner, tenant and PM if the lenders have to have a signed lease and all funds upfront, before the loan is closed.

@Andrew BrownI'm in the Reno Tahoe, Nevada market and we have tools that rate every property in our local market for cash flow potential.

When we look for arbitrage units for our clients to sublease, we are upfront and honest, as well as explain the risks to both parties of this model. 

…They simply have to buy as much or more than they sell for (after closing costs) and reinvest all “cash” they receive.