Refinancing can allow you to pull out equity, providing you with additional funds to use for the down payment on a new property.Look into financing options for purchasing a duplex.

Rental assistance/payments will begin the date the property passes the inspection.There are landlords that do not like the Section 8 program or want to be involved with it, either due to a bad tenant experience (which can happen in or out of the program) or simply from stereotype or ignorance of the program. 

Check with your lender what your new payment would be on the existing and what that would allow you to afford on your next purchase.You can still do an owner-occupied loan up to 4 units but if you're using your FHA/VA loan you'll have to go conventional 5-10% down. 

But it does happen. the major risk is to the person you bought the home from. its their credit at risk.and of course if you put any down payment that would be at risk as well if things got bad.when you go into these deals you need to know if the bank does call the note that you can refinance and pay it all off or you have the cash to retire the loan.. anything short of that and your at risk .

On the other extreme, for a (median) $382,650 purchase, rented at $1,400 /month rent, a mortgage at 0% down, 5% interest fixed for 30 years, the interest payment alone starts at $1,594 / month.

I JUST want a payment collection tool.

Hi Tim,Let's cut through the noise here.

So as of today it's been a rental for 3year and a month.It's being discussed to cut it loose and sell it.

Alarmist, cut and paste, dont kill the sale types, etc.

You should still expect to be bring down at least 20% down payment even with a value add situation if you are new to the game.