Only sell if (1) premise for acquisition changes, or (2) you must to acquire a bigger more attractive deal.Generate long-term wealth by investing IN real estate, not through transactions (casino vs gambler).

I would like to get a traditional mortgage so I can put that cash towards other deals.

I was fortunate enough to purchase this property with zero money down, but let's use a 25% down payment to illustrate what the cash flow looks like with a more traditional purchase. 

Is this an owner occupied single family home where the owner has a traditional mortgage and they are thinking of filing a BK?

Before looking at a portfolio lender, I would suggest that you 1st work with a knowledgeable mortgage banker (like me) so that they can understand your need, your financials and make the best recommendation.Please PM me if you would like to discuss.Upen PatelMortgage Banker We are looking at having 40 homes in 2-3 years and the traditional route will limit our chances of doing this. 

I can see how a young couple or someone with poor credit or not enough money for a traditional mortgage may want this option.  

If you can't do traditional financing (which is always the best first choice, so Homestyle which is conventional, etc.), then you want a hard money lender that is for 6 months, maybe a year max.  

The tenants would require 60- and 90- notices to move out, traditional renters and section 8, respectively.

If I follow this, you are saying he just makes traditional purchases - X% down and a typical mortgage?

I do the same thing with my properties, especially if traditional financing is involved.