Hi Kristi,If you plan to hold the property for the next 5 years, opting for a 5 year prepayment penalty makes sense, as it will significantly lower the rate.

I spent 14 years as a CFO/CPA for a $300 million farmland management and equipment auction company in North Dakota. Last year I left it all and purchased a boutique STR company in Arizona. It has been quite a journey ...

I would think they would.I was just thinking after seeing someone one the news who had their life savings in Florida STR's.I think it is important to diversity and not have all income producing properties in one place especially when it is prone to a certain type of potential destructive weather. 

Quote from @Landon Lehmann: If you cash out equity in a property, you are "borrowing" that money from the lender.

It has been a long time since I've been active here. 

First, short term, I'd like to expand my portfolio of just one property into 2 by househacking by owner occupying a multi property.

For those who have been investing in rental properties, what are the biggest financing challenges you've encountered, and how did you overcome them?

In a few years I'll be a rental property tycoon, but should probably get a job first to fund my RE business.

I own about 16 rental properties. 

My goal for right now is to gain some funds through wholesaling properties and then eventually obtaining a couple rentals in the next few years.