Consider exploring financing options like FHA loans and refinancing as the city grows.

@Keith AngellFrom my experience, both a HELOC and refinancing have their advantages depending on your goals.

We have many quick rehab deals reappraised and refinanced after the work is complete without much seasoning, usually around 90 days.

Monthly payment is 1900 with a 6.5 rate and would rent for 2500.posted in another group but realized it was the wrong one Hi Keith, Refinancing from an owner occupied loan to a non-owner occupied DSCR loan is tricky.

The main issue I have is contemplating the baloon payment at the end of the 2nd year and refinancing the remainder with a bank...how can I compute that into calculating the IRR?

Or even refinanced it to them?

I've been doing some light reading, and it sounds like refinancing that property and using the proceeds to reinvest elsewhere might be a better option. 

My name is Ashley Kroft and my mother-in-law has a property in El Paso, TX that will be refinanced soon to purchase my husband and I's first rental property.

.**** My current issue with the lender that I recently spoke with was that I had to have experience building a SFR on my own property and have sold or refinanced and held in order to be approved for the loan.

Long-term, look into refinancing once property values increase to lower your interest rate or pull equity for your next investment.Good luck!