I will take it all into consideration while I find out more from my PM and his contractor on timelines and tenant feedback. 

@Percy Matsunaga @Cameron RileyThere are several considerations that can go into the analysis of whether you need an LLC or whether a large insurance policy will suffice.

However, I'm thinking 5.75 is crazy so now looking to see what else is out there especially as I really don't want to coapply, then having to spend thousands to refinance six months later to remove coapplicant from title.Lender does not factor in new/potential rental income from investment property under consideration.

And that's not taking into consideration other activity, rentals owned directly, state returns, etc. 

Other considerations of cash on hand and order of operations for a potential refi are of secondary importance I think.

Now if your main goal and consideration is simply cash flow than analyze both types of properties and see what produces more per month.

Second, how likely is it you'll be able to actually collect has to be taken into consideration. 

If that’s the case, it doesn’t appear you even take criminal records into consideration in your criteria.

Investors usually withhold 20-25 percent of rent for expenses(repair, management, etc) when this expense is taken into consideration, with current rent, you are negative cash flow.

I just cash out refinanced my rental in Auburn Al and they also took my renter history and lease into consideration, but if you are going to live there, that income should just help your debt/income ratio.