I have been considering a DSCR loan on the Townhome to get some of our cash out of it. 

They can also help you figure out rental income, costs, and cash flow.

During rehab process the bank sees us with; 2 mortgages, 0 rents, and 1 income (spouse not working) and would be too risky. 2 mortgages will make us at borderline break even cash flow with existing income.

Currently I have the ability to purchase a single family residence for a price that won't cash flow unless I add an in-law suit of sorts.

Looking for cash flowing single family homes in the Portland, Beaverton, Newberg, Salem areas of Oregon.

Calculate cash flow I would hypothetically receive from STR MTR LTR I would put down the 3.5 FHA.

Which makes it difficult for positive cash flow.

Quote from @Cody Miller: I have been in my home for 7 years and have accumulated some equity and wouldn't mind using this to buy a rental Most people will recommend you cash out some of that equity and use it to purchase a rental.

Inspite of the recent correction, as the house prices currently stand and with inflated interest rates plus steeply rising property taxes (year over year municipalities have increased taxes and utilities 7-15% to make up for covid deficits); cash flow is virtually impossible even if you buy in the GTA outskirts like Oshawa, etc.

I have 11k cash and the rest I’m taking out if my 401k.