Searching in a hot market like Seattle area is challenging as the retail buyers drive up the prices beyond what makes sense as an investment.

In March of 2016, she refinanced to a 20 year mortgage at 3.5% because it was going to be our new primary home and we felt at the time that it made sense to expedite our payments and lock in a lower interest rate.

No sense in pinching pennies on something that will make your life much easier moving forward. 

@Snehann Kapnadak I agree with @Andrew Johnson depending on the deal size, location, underwriting, you may or may not need a syndication and can use other options to buy (if it makes sense of course). 

from your first sentance of who brought the project and thinking of Texas rehabbers I could sense trouble.It happened to me there as well.. now i could afford to take the hit.. but that is ONE TOUGH market to workeven when things went well ARV and sale price never meshed .. its  a local experts market.. and contractors dont need to be licesned.. this simply is not surprising..thanks for posting this is a good warning to others who think fix and flip is like TV.. and to be uber cautious in Texas.

With what you describe, it doesn't sound like your wife is completely against mortgages and debt, it just sounds like that paid off property is and asset in your family's financial 'toolbelt' so to speak that she takes a sense of security in knowing is paid for. 

Same holds true for turn overs, the more you do the better you get and the stronger your business will ultimately be during hard times.  

The duplex makes better financial sense. 

But I fear that with the situation we are in, it may make more sense to go with the Portfolio Loan so that we don't run into road bumps around the Quit Claim deed transfer and zoning issues (SFR used technically as duplex).

But I fear that with the situation we are in, it may make more sense to go with the Portfolio Loan so that we don't run into road bumps around the Quit Claim deed transfer and zoning issues (SFR used technically as duplex).