Reasons not to pay off a rental property:  Mortgage interest on a rental property is fully tax deductible  Paying off also lowers your CoC return  You become less liquid.

Hi allCurrent Situation:29500-510k/assets (420k taxable brokerage - 55k roth - 14k hsa - 10k + liquid ish)75k annual incomeCurrent rent 1000+200 utilitesI've never taken an FHA or anything - I did sell my house over 2 years ago though (bought through a land contract from my father under the table sorta due to self employment stipulations at 23 and sold it when I moved).I've been trying to get into real estate for a while now.

Essentially you are putting more than just the subject property "on the line" for the loan - but that healthy equity buffer will help with no having or needing liquid downpayment for acquisition.

There are 2 forms of cash:1 - Cash Flow, which you own and is liquid, and...2 - Equity, which you don't own, the property does,...you own the property (not the same thing as owning the equity,...you control the equity), and is frozen.Don't fall in love with any property,...fall in love with the cash, which exists with equal "face value", regardless where it rests. 

Attending local REIA events to network with HML reps, individual private lenders, and other investors for HML referrals.HMLs will also look at FICO and your liquidity, but from what you've said above, you shouldn't have a problem getting financing.The margin on your deal is hefty and you have experience; the experience most HMLs will look at is recent completed deals.Be sure to speak with enough lenders so that you have options and be sure to understand;1.

I'm also not in the financial position to do an investment property that would require a 20% down payment, as all of my liquid funds went into the purchase of my first home, and I haven't had a chance to build up my savings towards a new purchase. 

The last issue you will run into is that these loans require a few more things.... you have to have net worth equal to or great than the loan balance excluding your primary residence, and you also need to have plenty of liquidity and experience to qualify. 

I was wondering if any experienced RE veterans could suggest financing options based off the situation I'm in:**I'm 22 years old, have a 690 credit score, have $5,000 saved up in cash - liquid, the average market value of a house in my local area is $385,000 - $400,000 just based off comps**Considering I'm young, have a decent credit score with little liquid funds available in an expensive market (can't do 20% down), I was wondering if anyone has any suggestions and approaches I should take for financing/funding homes specifically for fix and flips. 

I would do them individually vs one mortgage because then if they liquidate or sell one then you need to have language to protect you as well..

This is a great way to kick start your real estate portfolio with limited liquid cash.