I guess my other question is wouldn't cash flow potential increase over time as your mortgage cost (the interest payments) decrease and you can increase rent. 

You get 13%.Increased Scale, Less Risk – You’re investing in a former hotel with 23 upscale units and a view of the Cali River.

And walk-In customers like me.

Then within 1 to 2 years move out by buying another place rent your old place out you lived in and continue to increase your positive cash flow.Remember, cash flow is king!!

I know that increases the payment and adds PMI but I think we could find a program with a reduced or zero PMI option. this would keep more money in our pockets for other investments or rehab work.

It is a Fannie Mae ARM with the first year being X and the remaining term of the loan increasing and becoming fixed by 1% the following year for the remainder of the 30 year loan.

We have to physically go into a bank for the deposit since it's easy to blow past the number of check limits and/or the dollar amount limits.In our case, we're doing commercial real estate so the check values are high per month.I would love to ask our customers to do ACH / direct deposit, but they're not always amenable to that. 

Some of that would also be used to pay the ~$1500 in closing costs on this new loan.I understand that this increasing how much we are leveraged greatly(by 34k). 

Your number one priority should be increasing your income.

When you rely on outside help that may or may not exist, you increase liability.