I’m still selective and look for buildings where about half the income comes from the residential units so the deal isn’t overly dependent on commercial lease income.I also aim for higher cap rates than I would with a straight multifamily deal, mainly because I need the extra cash flow to qualify for higher-leverage loans from community banks and credit unions once the property is stabilized.

Between a cash-out refi and a HELOC I would look to a HELOC first since you have the flexibility to pay it down whenever you want and then pull the funds out again, which is powerful, but not many banks will do them on investments, and fewer for reasonable rates, so you'll have to compare whatever options you can find in your market.

And was the first lender a private lender or Bank/lending company? 

Quote from @Whitney Huestis: My husband and I have our SDIRA account in a local bank and want to start utilizing it.

Sometimes banks are too slow, and waiting on approvals can mean missing out on opportunities.

For the fastest close:Local banks / credit unions (portfolio lenders).They can close in 2–3 weeks and are way more flexible on DSCR, condition, and occupancy than big commercial lenders.20–25 percent down5–6.5 percent interest depending on market20–25 year amortizationThey’ll usually let you roll some of the rehab into the loan if you can show bidsA strong W2 plus existing rentals puts you in a great position with them.2.

At some point people realize they can't borrow their way out of debt, they need alternatives, this is an alternative that doesn't need banks and large bank fees.

Better for longer term fixed rate for both the SBA side and the bank side.  

We’re one of the few property managers that require W-2’s and a bank statement and we go way beyond the traditional, “income must = 3x rent” qualifier.Below is more information about what our Applications Department does to screen applicants and find the best tenants possible for your property.Required InfoWe require the following from each applicant over the age of 18, that is not a dependent of another applicant (as evidenced on a tax return):Copy of acceptable state picture IDRecent YTD paystubRecent W-2Recent Bank Statement, all pages, no info blacked outRecent tax return if self-employedApplicants are often slow about turning this information in, asking us why we need it and then taking several days to submit.

I wasn't interested in real estate investment at first knowing very well that you need to have high net worth and substantial cash in the bank to investment in those kind of deals.