With current inflation rates, you are theoretically losing money the more liquid you are.In the long-term, I highly recommend utilizing your VA loan to snag a 2-4 unit MFH in a metro market.

I would agree with the others above, option 2 looks much better in terms of having more cash out to acquire another property that will give more cashflow than the 100 dollars you "lose" from the refinance. 

As long as you’re cool with losing your friends if you don’t pay them back every single cent you borrow, I guess that’s one way to go.

I have shown her it doesn't lose money so I have a little less to battle. 

I've read how some first deals even had people lose A LOT of money, but they didn't stop and tried with another property.

Today, for the first time, I accepted rental payment in the form of a Disney-Princess-themed personal check.It's gettin' hard out here...

I also don't care about the employment history either because if they get lose their job or get their hours cut they simply send an email to me and the Housing Authority and the housing authority starts covering 100% of their rent until they get another job. 

Note, even if insurance pays for all the damage your property suffers, you still lose.

I'm guessing because you will lose tenants during a market crash and the large amount of debt can lead to the mortgage coming out of your own pocket (ie negative cash flow), and you can't sell the properties either since the prices dropped so low?

Hi Ryan,Wow parking for 30 dancing Zumba goers must make the street a true zoo(omba).30 friends getting together for dancing for fitness private party at someones house every Sunday after church, is different than using the property as a fitness destination business.It would be smart to ascertain which you have here.Simply telling her, your Sister wants to lose few pounds Zuba-ing--how much does it cost and can you have the join-up paper work for her might tell you what you need to know.