A seasoned investor should be able to explain exactly why so you can verify it independently on your own. 

You allow the property to season for a year, building a 1-year rental history, then refinance to pull your original investment out so you can do it all over again.

In the world of no, low doc, aka DSCR loans, I believe that the fund source doesn’t matter as much as long as it is seasoned.

My equity and cash flow today is directly correlated to the people that I've leveraged in Indy, the only thing I brought to the table was trust and grit to get through the tough times.I'd suggest you do it the way I did it (since you're a seasoned investor), start from ground up, learn the ropes in that market and don't do the turnkey route.

I'm sure other more seasoned REI here will have more advice.    

If you refi the FNMA loans into a commercial loan, then you are down to 0 FNMA loans, and you can do cash-out.There is a 6 month seasoning requirement (from purchase date) before you can do a loan against a new appraisal.Upen Patel, Mortgage BankerFederal NMLS# 1374243

I'm a new father, soon to be husband and a seasoned business owner of 9 years.  

Pm me for actual numbers and even links if you like.You are right, though, you are seldom going to find a quad in an ideal, dream home, stepford wives type subdivision of white picket fences and Norman  Rockwell charm...The quad on quad street is no one's dream home, but if you have a good product at the right price, you may get dozens of calls ( I have logged a hundred in the peak season) for that clean but affordable humdrum unit on quad street.

If you are okay with living in the duplex, let it season some, and, as mentioned, keep saving up for the down payment on the next one while studying the market and expanding your landlording skills--both on the ground with the duplex and with books (I have a Classics of Landlord Lit" blog post, but you may have burned through the core reading). 

They're not your out of state investors, but they're the real players in your space.