In most of these cases, you will be drawn in by 100% financing and be limited to an LTV ratio anyway; you're just stuck with a higher interest rate.

When rates were super low, I did $18.3M.

There is no interest rate, its a flat fee based on the amount borrowed.

@Eric Lunsford  Generally the interest income from private lending is taxed at the ordinary income tax rate, just like earned income from a job or interest on a bank savings account is taxed.

I want to keep the property longterm since its a good rental and the interest rates unbeatable but I want to pull by 10K downpayment as well as renovation budget out of the property.Has anyone ever had any sucess refinancing a portion of the home while still keeping seller financing in place? 

Hope this helps, and fee free to send over any specific questions you have.

Most work this way Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 $2,500 minimum fee)Max Loan: 65%-70% of After Repair Value(ARV)100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

After rehab is complete, you can work with a lender to do a cash out refinance and get into a conventional loan where the interest rate will be lower.

One  downside to the VA loan is having to pay for the VA  funding fee  ( unless you are  exempt  on  having to pay this ) ...if you pay 600K  and put  10K down  and  finance  the VA  funding fee - your end loan amt will likely be  > 600K ....make sure you have a loan pre approval in place  and make sure you can use antoher VA loan .   

We would otherwise be paying ~$20k/unit per year in cleaning fees. - Downtown location, near restaurants and a 3 min walk to train station- Only 2 off street parking spots, street is permit parking only but there is free parking down the street- Units have just been completely renovated- The city does not have any ordinances against short term rentalsThe biggest hurdles for me are: we're about to go into a slump/down season; potential parking issues; and if one of the other units were rented long term - dealing with the hassles related to that.