I'm looking at SFH in the Bethlehem-Allentown area in need of light repairs or TLC, also open to any tips or advice.

This will also only require one loan, which will give me more ability to purchase additional homes down the road with traditional financing.Option 2: Liquidate 50% of the portfolio and buy a duplex, while keeping the other 50% invested in the brokerage account.

I was reading that I’ll have to get creative with my financing being that obtaining a traditional loan may not be available to me.

As @Jay Hinrichs mentioned, the test is not easy, and shouldn't be taken lightly.

After putting $2500.00 in Ernest Money down and being pre approved for a traditional 30 year loan (which I used to run all the numbers) I was advised the residence was not able to be purchased by a traditional loan. 

She had transformed the basement into an office with sheetrock, overhead lighting, installation of a closet, insulation, etc.

The key is the way you package your application but without an understanding of a lender's guidelines, it can be tricky to present your app in the best light. 

Unless you are going to 1031, or have enough equity to cash out a chunk with a refi, selling it traditionally will eat a lot of that equity up.

The other $500 goes to plowing the street in winter, lights for entrance, insurance etc.  

My question: When we refinance through a traditional mortgage lender, can we do a cashout refi right away if the home appraised for more than the purchase price, or does the new mortgage have to season before we can even consider a cashout?